Bny euro credit short duration june 2013_final

Short term - Attractive returns, The right choice for corporate bonds

CORP_1

Prepared for professional clients only

Alexis Renault, CFAExecutive Director, Head of High Yield

20.6.-21.6.2013

Any views and opinions expressed within are those of the investment adviser.CFA© and Chartered Financial Analyst© are registered trademarks owned by CFA Institute.

Agenda

BNY Mellon Investment Management

The case for Euro Credit Short Duration

The BNY Mellon Compass Fund Euro Credit Short Duration Fund

Team & Track Record

Investment Philosophy & Process

Strategy & Portfolio Structure

Summary

1

Investment Management Investment Services

● $1.4 trillion in assets under management1

● 7th largest global asset manager2

● 7th largest U.S. asset manager2

● 8th largest asset manager active in the European marketplace2

● Service $179 billion in private client assets● Top 3 private bank in the US3

● Top 10 US wealth manager4

● One of the largest providers of securities services with $26.2 trillion of assets under custody and/or administration

● The world’s largest custodian5

● Service $2 trillion in global collateral, including tri-party repo collateral worldwide

● #1 service provider for ETFs6

● A leading lender of US Treasury securities● A leading offshore fund administrator● Leading provider of US Government Securities clearance services7

● #1 Trustee for US Debt Capital Markets8

● Market leader in depositary receipts with 1,398 sponsored programs with leading companies from 68 countries

Strong Market Positions in our Businesses

CORP_2

● Pershing, LLC is a leading provider of clearing and financial advisory solutions to IBDs and RIAs

● #1 U.S. clearing firm, ranked by broker-dealer clients (Pershing, LLC)9

● Manage one of the ten largest US bank derivatives portfolios10

● A leading provider of foreign exchange services11

● Process 170,000 global payments totaling an average of $1.5 trillion daily● Fifth largest participant in CHIPS funds transfer in the US12

● Sixth largest SWIFT participant worldwide13

● One of the world’s largest providers of performance & analytics

All company statistics are as at 31 March 2013 unless otherwise noted.1. Assets under management include investment boutiques and wealth management.2. Rankings include assets managed by BNY Mellon investment boutiques and BNY Mellon Wealth Management. Each ranking may not include the same mix of firms. Global asset manager rankings by Pensions & Investments, October 2012; US asset manager rankings by Institutional Investor, July 2012; European asset manager rankings by Investment & Pensions Europe, June 2012.3. Barron’s Top Private Banks Thriving in the Tumult, December 3, 20114 . Barron’s Top Wealth Management Firms, September 15, 2012 5. Institutional Investor, World’s Largest Global Custodians, October 2012, data as of June 20126. 2012 Mutual Fund Service Guide7. Federal Reserve Bank of New York - Fedwire Securities High Volume Customer Report, September 30, 20128. Thomson Reuters, US Capital Markets Review, first nine months, 20129. Investment News, July 201210. OCC Quarterly Report on Bank Trading and Derivatives Activities, second quarter, 201211. Global Finance World’s Best Foreign Exchange Providers, January 2013 and Global Investor/isf FX Survey, February 201212. The Clearinghouse and Federal Reserve Board, September 201213. SWIFT, January 2012

2


• Total AUM US$1.4 trillion1

• Institutional grade investment management, innovation and market leading intelligence

• Each investment manager has its own proprietary investment processes

− No ‘house view’ is imposed: there is no overall Chief Investment Officer

− Each investment manager retains complete investment autonomy

• An entrepreneurial, focused approach is encouraged

− Each investment manager focuses solely on investment management

• A great breadth and depth of expertise in every major asset class and sector

CORP_4

1 As at 31 March 2013

− More than 275 institutional investment management product offerings

3

A multi-boutique investment management model encomp assing investment skills of world class specialist investm ent managers

BNY Mellon Investment ManagementOur world class specialist asset managers

Global sub-investment grade debt asset management

US$18.0bn1

Brazilian multi-strategy, long/short, long-only and fixed income strategies

US$7.7bnMoney market funds

US$225.7bn

Greater China capital market specialist

US$155mn

Active fundamental equity manager; core, growth & value styles; U.S., global

and world ex-domestic marketUS$43.6bn

Fund of hedge funds; non-proprietary manager of managers

Asian equities management

Leader in liability driven investment, fixed income, currency risk management, multi-asset, absolute return style and specialist

equity solutions

Global multi-asset solutions and strategies ranging from indexing to

alternatives European fixed

income and equities

CORP_5

2

3

46

1 AUM for The Alcentra Group, 2 A division of The Dreyfus Corporation, 3 Minority Owned, 4 In North America and Australasia the Insight Investment Group operates under the Insight Pareto brand. 5 Assets under management figure represents the combined assets under management of Insight Investment Management (Global) Limited and Pareto Investment Management Limited, which became part of the Insight group on 1 January 2013. Data as at 31 March 2013. Assets under management are represented by the value of cash securities and other economic exposure managed for clients. 6 Meriten Investment Management GmbH (formerly WestLB Mellon Asset Management) is wholly owned by The Bank of New York Mellon Corporation following the buyout of the remaining 50% of the 50:50 joint venture with Portigon (formerly WestLB AG) in October 2012. 7 AUM for The Newton Group, *Provisional AUM has been provided by each asset manager as at 31 March 2013. Total AUM, provided by the Bank of the New York Mellon Corporation, includes the asset managers outlined in this presentation as well as BNY Mellon Wealth Management and external data.

4

Total AUM US$1.4 trillion

manager of managersUS$5.0bn

managementUS$1.2bn*

equity solutionsUS$387.2bn5

alternatives US$303.9bn

income and equitiesUS$25.7bn

Active equity and bond, multi-asset, real-return and income solutions in a

global thematic frameworkUS$84.6bn7

Multi-strategy private equity investing; direct investment and fund-of-funds

US$10.4bn

Award-winning global, emerging markets and regional fixed income

solutions specialistUS$167.0bn

U.S. & Global real estate investment management

US$7.8bn

Global equity investment management

US$63.4bn

3

Agenda




Team & Track Record



Summary

5

The Short Duration Credit Opportunity

Short duration credit (SDC) is an attractive, risk‐adjusted investment opportunity;

• Lower volatility of SDC is a direct result of reduced sensitivity to both:

− A rise in the general level of interest rates

− An increase in credit spreads

• A blended approach further enhances this efficiency• A blended approach further enhances this efficiency

• Appropriate for moderate to lower risk appetites

• SDC yields and prospective returns are attractive versus treasuries

• SDC has shorter duration than the high yield and investment grade markets without material yield compromise

6

Cumulative default rates over time*

Defaults inyears 5-8: 7.46%

Defaults inyears 1-4: 15.13%

High Yield

10

15

20

25

30

Cum

ulat

ive

defa

ult r

ate

(in %

)

*Source: S&P, based on global default rates from 1981 – 2010. Data for general market not for the fund.

● The increase in defaults over the first 4 years was the highest

● After several years, annual default rates decreased (i.e. annual defaultrates should be lower for bonds with a shorter residual time to maturity)

years 1-4: 15.13%

Investment Grade

0

5

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Cum

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ive

defa

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ate

Time horizon (in years)

7

Yearly Performance Short Duration Credit: the attraction of a blended approach

2000 3.75 3.91 4.23 4.54 -15.87 - 6.28 - 6.22 4.982001 14.76 13.58 11.22 8.89 -13.94 6.53 - 16.67 5.442002 5.13 5.28 5.54 5.76 -5.12 0.71 - 2.89 6.032003 17.87 16.18 12.85 9.61 26.4 28.10 - 20.29 4.90

US HY***Euro HY

1M-3,5Y***US HY 1-3Y***

Euro IG Non-Financial 1-3Y**

Credit Short Duration*

80% H Y/ 20% IG 70% H Y/ 30% IG 50% H Y/ 50% IG 30% H Y/ 70% IG

Euro HY***

As at 31 December 2012 .* Combination of BofAML High Yield US Corporates Cash Pay 1-3 Y (hedged into Euro) and iBoxx € Corporate Non-Financial 1-3 Y; ** iBoxx € Corporate Non-Financial 1-3Y; ***BofAML Euro High YieldNon-Financials BB1-B3 1 mo-3.5 Y; comparative index history of the Compass Fund Euro High Yield Bond Fund (currently: BofAML Euro High Yield Fixed Floating Rate Constrained Bond ex Financials); BofAML High Yield USCorporates Cash Pay 1-3 Y (hedged into Euro); BofAML US High Yield Cash Pay (hedged into Euro). Source: Bloomberg, DB Index Quant, Meriten Investment Management. Past performance is not a guide to futureperformance.

2004 8.62 8.07 6.97 5.87 14.73 11.40 - 9.05 4.252005 1.39 1.49 1.70 1.90 6.8 1.63 - 2.37 2.212006 6.94 6.33 5.13 3.93 8.9 9.06 - 10.74 2.172007 1.91 2.09 2.45 2.81 -2.09 0.77 - 2.96 3.342008 -12.06 - 9.99 - 5.84 - 1.71 -33.68 -27.85 -15.44 -14.71 6.182009 37.73 34.05 26.90 20.04 73.08 56.35 31.83 45.57 9.122010 11.03 10.05 8.09 6.15 14.51 14.42 7.75 13.43 2.652011 3.81 3.68 3.41 3.13 -1.26 4.46 3.76 4.07 2.702012 9.21 8.64 7.49 6.36 23.19 14.88 14.82 10.36 4.69

Positive returns in all years bar 2008

8

Yearly Performance Short Duration Credit: the attraction of a blended approach

2 Years 10 Years 2 Years 10 Years

2000 3.75 3.91 4.23 4.54 0.25% -0.52% -1.07% N/A2001 14.76 13.58 11.22 8.89 -0.88% 0.08% -2.11% -0.07%2002 5.13 5.28 5.54 5.76 -0.90% -0.73% -1.47% -1.21%2003 17.87 16.18 12.85 9.61 -0.14% 0.05% 0.24% 0.44%2004 8.62 8.07 6.97 5.87 -0.13% -0.64% 1.19% -0.05%

US Treasuries

Yield Change**Credit Short Duration*

German Bunds80% H Y/ 20% IG 70% H Y/ 30% IG 50% H Y/ 50% IG 30% H Y/ 70% IG

As at December 2012.*Combination of BofAML High Yield US Corporates Cash Pay 1-3 Y (hedged into Euro) and iBoxx € Corporate Non-Financial 1-3 Y; **Yield changes Germany based on Rex Bond Sub Index Current 2 Yand Rex Bond Sub Index Current 10 Y, Yield Changes USA based on BofAML US Treasury Current 2 Y and BofAML US Treasury Current 10 Y. Source: Bloomberg, DB Index Quant, Meriten Investment Management. Pastperformance is not a guide to future performance.

2004 8.62 8.07 6.97 5.87 -0.13% -0.64% 1.19% -0.05%2005 1.39 1.49 1.70 1.90 0.38% -0.38% 1.38% 0.18%2006 6.94 6.33 5.13 3.93 1.00% 0.63% 0.42% 0.31%2007 1.91 2.09 2.45 2.81 0.22% 0.46% -1.75% -0.67%2008 -12.06 - 9.99 - 5.84 - 1.71 -1.91% -1.10% -2.31% -1.79%2009 37.73 34.05 26.90 20.04 -0.97% -0.01% 0.38% 1.59%2010 11.03 10.05 8.09 6.15 -0.27% -0.20% -0.57% -0.53%2011 3.81 3.68 3.41 3.13 -0.64% -1.10% -0.36% -1.43%2012 9.21 8.64 7.49 6.36 -0.23% -0.55% 0.01% -0.14%

Strong performance in a rising yield environment

9

Duration effect

Indexed Price development

80.0

82.5

85.0

87.5

90.0

92.5

95.0

97.5

100.0

102.5

105.0

107.5

110.0

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Indexed price development Lafarge 02/13 vs 03/20*

LGFP 5.448 12/04/2013 Corp

LGFP 4.75 03/23/2020 Corp

75.0

77.5

80.0

82.5

85.0

87.5

90.0

92.5

95.0

97.5

100.0

102.5

105.0

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Indexed price development FIAT 02/13 vs 07/18**

FIAT 6.625 02/15/2013 Corp

FIAT 7.375 07/09/2018 Corp

100

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Spread development FIAT 02/13 vs 07/18**

FIAT 6.625 02/15/2013 Corp

FIAT 7.375 07/09/2018 Corp

100

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800

Jun-

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1

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2

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Spread development Lafarge 02/13 vs 03/20*

LGFP 5.448 12/04/2013 Corp

LGFP 4.75 03/23/2020 Corp

* Source: Bloomberg. As at December 2012. Notice: Past performance is not a guide to future performance. This information is provided for illustrative purposes only and should not be construed as investment advice.

Spread development

+81

+102

-93-19

10

Risk and return in selected periods (as of 31/05/2013)

Performance and risk of alternative portfolios structures (in %)Portfolio*

80%HY/20%IG 70%HY/30%IG 50%HY/50%IG 30%HY/70%IG

Period

1 year 3.49 9.64 14.19 11.46 17.77 8.38 7.76 6.53 5.30

3 years (annualised) 3.33 8.50 11.43 8.88 11.31 7.45 6.93 5.90 4.87


10 years (annualised) 3.97 8.06 8.42 - 9.17 7.29 6.90 6.10 5.26

Period

Euro HYCredit Short Duration

Performance

Risk**

IG Non-Fin 1-3 Y

US HY 1-3 Y

US HYEuro HY 1M-3,5Y

*Represented by the following indices or index combinations: iBoxx € Corporate Non Financial 1-3 Year Index; BofA Merrill Lynch High Yield US Corporates Cash Pay 1- 3 Year Index; BofA Merrill Lynch High Yield US CorporatesCash Pay Index; BofAML Euro High Yield Non-Financials BB1-B3 1 mo-3.5 Y; comparative index history of the Compass Fund Euro High Yield Bond Fund (currently: BofAML Euro High Yield Fixed Floating Rate ConstrainedBond ex Financials); Credit Short Duration by combining BofAML High Yield US Corporates Cash Pay 1-3 Y (hedged into euro) and iBoxx € Corporate Non-Financial 1-3 Y. ** Standard deviation of monthly rates of return; Source:Bloomberg, DB Index Quant, Meriten Investment Management; Past performance is not a guide to future performance.

● Return generated by Credit Short Duration in nearly all periods > 5%

● Allocation between high yield/investment grade offers risk reduction potential

● On a 5 year view a 70%HY/30%IG portfolio would have delivered 80% returns as Euro HY with 60% of the volatility

● On a 3 year view a 70%HY/30%IG portfolio would have delivered ⅔ returns as Euro HY with only ⅓ of the volatility

Period

1 year 1.17 1.46 2.49 1.74 2.90 1.16 1.04 0.88 0.88



10 years (annualised) 1.63 9.40 10.59 - 11.87 7.67 6.81 5.11 3.47

Risk**

11

0.60 0.61 0.64

0.69 0.72

0.80

0.94

0.59 0.59 0.65

0.72 0.77 0.77

0.90

1.13

Highest Sharpe Ratios by combining High Yield and Investment Grade short duration (as of 31/05/2013)

10 Years (annualised)

5 Years (annualised)

0.59 0.59

Euro HY US HY US HY 1-3Y 80%HY/20%IG* 70%HY/30%IG* EU HY 1M-3,5Y 50%HY/50%IG* 30%HY/70%IG*

*Combination of BofAML High Yield US Corporates Cash Pay 1-3 Y (hedged into Euro) and iBoxx € Corporate Non-Financial 1-3 Y; Data for EU HY 1-3.5 based on BofAML Euro High Yield Non-Financials BB1-B3 1 mo-3.5 Y;Data for Euro HY based on BofAML Euro High Yield Fixed Floating Rate Constrained Bond Index ex Financials; Data for US HY 1-3Y based on BofAML High Yield US Corporates Cash Pay 1-3 Y Index (hedged into Euro); Datafor US HY based on BofAML US High Yield Cash Pay Index(hedged into Euro) Source: Bloomberg, DB Index Quant, Meriten Investment Management. Past performance is not a guide to future performance.

12

5.45

4.66

6.67

Short duration credit stands out in today’s low rate environment

Yield*

Modified Duration*

2.76

1.73

0.91 1.42

3.65

BNY Mellon Compass Fund Euro Credit Short Duration Fund

High Yield ex Financials** iBoxx Euro Corporate Non-Fi nancial iBoxx Euro Sovereign Germany

* To maturity. Source: Meriten Investment Management, as of 31/05/2013; ** BofAML Euro High Yield Fixed Floating Rate ex Financials Constrained Index; Past performance is not a guide to future performance.

13

Breakeven AnalysisECSD and EHY vs Short term German Government Bonds

� With a modified duration of 1.42 ECSD will outperform short term German government bonds if spreads rise less than 340 bp.

Yield Yield

What if spreads rise?

� With a modified duration of 3.68 Euro High Yield will outperform short term German government bonds if spreads rise less than 185 bp .

Source: Meriten Investment Management, as of 31/05/2013; Projected performance is based on model data. Unlike an actual performance record, projected results do not represent actual trading and may not reflect the impact that market factors might have. Such forecasts are not a reliable indicator of future performance and that are no guarantees that the performance will reflect the model.


2.76%

iBoxx Euro Sovereign Germany 1-3 Years

0.09%

Spread over iBoxx EuroSovereign Germany 1-3 Years

267 bps

BNY Mellon Compass Fund Euro High Yield Bond Fund

5.73%

iBoxx Euro Sovereign Germany 1-3 Years

0.02%

Spread over iBoxx Euro Sovereign Germany 1-3 Years

564 bps

14

Agenda



The BNY Mellon Compass Fund Euro Credit Short Durat ion Fund

Team & Track Record


15



Summary


Firm

Meriten Investment Management is a wholly owned subsidiary of Bank of New York Mellon Corporation

Firm AuM: €24.3 billion, €9.2 billion in credit (end of March 2013)

47 Investment professionals – 13 within credit team

Attractive track record of credit management with more than 12 years with no default in their entire history

Fund Objective

Achieve a high level of income and capital growth by investing primarily in corporate bonds denominated in Euro’s with a rating of at least B3 or B- and a maximum residual maturity of 3.5 years. A minimum of 20% of the assets will be invested in sub-investment grade bonds

¹ As at 31/05/2013. 2 Based on the iBoxx € Corporate 1- 3 Jahre Index (Investment Grade) / based on the BofA Merrill Lynch Euro High Yield Non-Financials BB1-B3 1 mo-3.5 Yrs Index (HighYield). As of 31/05/2013. Please note that no representation or warranty is given that return targets will be achieved. Past performance is not a guide to future performance.

Key facts Investment policy/guidelines

Launch date: 01 June 2011 A portfolio of high yield and investment grade corporate bonds

Portfolio duration: Approx 1.42 ¹ Maximum maturity of any one bond: 3.5 years

Volatility ex-ante: Approx 1.97% ¹ Market capitalisation: €399bn (Investment Grade),€61 bn (HY Non-Financials) 2

Current yield: Approx 2.76% ¹ ( 80% HY / 20% IG) Issuer limit: 5%

Minimum rating B3/B- Sector limit: 25%

Liquidity: Daily

B3 or B- and a maximum residual maturity of 3.5 years. A minimum of 20% of the assets will be invested in sub-investment grade bonds (High Yield). Issuers are principally from countries with investment grade rating.

16

Assets under Management in “Euro Credit Short Duration”Successful in challenging markets

600

700

800

900

1000

millions €Total AuM Compass Fund

17

BNY Mellon Compass Fund Euro Credit Short Duration Fund was launched June 1st 2011

0

100

200

300

400

500

Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13

Source: Meriten Investment Management, as of 31/05/2013; Past performance is not a guide to future performance.

100

105

110

115

120

125

Euro Credit Short Duration-Fund* Euro High Yield-Market** Euro Equity-Market***

BNY Mellon Compass Fund Euro Credit Short Duration Fund Stable performance in turbulent times

70

75

80

85

90

95

Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13

*BNY Mellon Compass Fund Euro Credit Short Duration Fund (cumulated performance net of fees); **BofAML Euro High Yield Fixed-Floating Rate ex FNCL 3% Cap (HEAE) Index (the index doesn’t serve as the comparative index of the fund); ***EURO STOXX 50 (the index doesn’t serve as the comparative index of the fund); Source: Datastream, Meriten Investment Management; as of 31/05/2013; Past performance should not be taken as an indication or guarantee of future performance.

18

9.16%

3.06%

8.03%

5.49%

Performance BNY Mellon Compass Fund Euro Credit Short Duration Fund (gross of fees, RF-B share class)

Calender year performance Standard periods performance

-0.25%

2.22%

2011* 2012 2013 YTD

0.09%

1.44%

3.06%

2.22%

1 month 3 months 6 months YTD 1 year since inception*

(p.a.)

* Inception: 01/06/2011; as of 31/05/2013; TER: 0.53% (as of 31/10/2012) Past performance is not a guide to future performance. Source: JPMorgan/Meriten Investment Management

Performance ratios since inception*

Performance (p.a.) Volatility Sharpe Ratio

5.49% 2.96% 1.66

19

Performance analysisBNY Mellon Compass Fund Euro Credit Short Duration Fund (30/12/2012 - 31/05/2013)

Sector/Segment Weighting* Contribution

Compass Euro Credit Short Duration 100,00 2,30 High Yield 88,45 1,94 Auto_Parts 14,42 0,24

Bank 3,30 0,06

BasicResources 13,70 0,17

FoodBeverages 1,88 0,01

HealthCare 9,55 0,36

IndGoodServ 16,14 0,31

Oil_Gas 1,75 0,05

Packaging 2,67 0,01

Retail 0,87 0,06

Technology 3,55 0,03

Telecom 3,22 0,04

Travel_Leisure 2,14 0,29

UtilitySuppliers 7,78 0,16

Chemicals 4,69 0,12

Telecom-Cable 2,79 0,02

Corporate Bond IG 20,05 0,27 Automobiles & Parts 1,54 0,01

Banks 4,92 0,08

Chemicals 0,10 0,00

Construction & Materials 1,30 0,02

Financial Services 0,65 0,01

Food & Beverage 1,16 0,01

Industrial Goods & Services 0,84 0,01

Media 0,17 0,00

Oil & Gas 1,36 0,01

Personal & Household Goods 0,38 0,00

Retail 0,76 0,01

Telecommunications 3,50 0,05

Utilities 3,37 0,05

Cash 0,88 0,09 Others** -9,38 0,00

* Average weighting. **This position contains synthetical receivables & liabilities; Source: Meriten Investment Management, Bloomberg; Past performance is not a guide to future performance.Investments are subject to risk and there is no guarantee that the Fund's investment objectives will be achieved. Portfolio holdings are subject to change at any time and without notice; are forinformation purposes only and should not be construed as investment recommendations. Performance numbers are based on gross of fee data

20

Low volatilityEx-ante volatility of the BNY Mellon Compass Fund Euro Credit Short Duration Fund (share class RF-B) since inception

3.5%

4.0%

4.5%

Inception: 01/06/2011; as of 31/05/2013; Note: Past performance is not a guide to future performance. Source: Barclays POINT

* Time horizon: 1 year / Confidence: 95%

1.5%

2.0%

2.5%

3.0%

Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13

21

Agenda




Team & Track Record

22



Summary

Investment Management Team

Alexis Renault

Corporate Credit

Henning Lenz

Heike Christian

Gunther Westen

Asset Allocation/ Fund Management

Fixed Income Asset Allocation

Ulrich Faupel

Order Desk

Chief Investment Officer

Uwe Fuiten

Team Assistants

Dagmar Rust

High YieldMichael Grunow,CFA*

Frank Kreuzhagen

Iris Secker

InvestmentGrade

Bastian Gries,

Structured Credit/ABS

AndréSchlingloff, CFA*

Alexander Paluzelli

Sven Rudolf

Peter Zimmer

Marion van Bürck

Sara Schlamann

Dr. Stefan Braun, CFA*

Quantitative & Equity Products

Quant. Products& Research

Karsten Seier,

Europ. Small CapsSpec. Equity Prod.

As of June 2013; * CFA© and Chartered Financial Analyst© are registered trademarks owned by CFA Institute.

Asset Management/Research

Alexis RenaultCFA*

Marco Gemmel

Dennis Lehnhoff

Marcus Stegemann

Frank Blass

Brigitte Behrendt

André Schäfer

Stephan Schümann

HeikeJürgens-Kreft

Henning Flender

Markus Knebel

ChristianSobotta

Client Relation Desk

Iris Secker

Sandra Wendel, CFA*

Tim Frankenheim, CFA*

Matthias Lackmann, CFA*

Olga Lepp

Maik Ohm, CFA*

Elena Romanenko

Bastian Gries, CFA*

Peter Zimmer

O. Bogdan Covaciu

Martin Dreier

Thomas Rentsch,CFA*

Ivan Romanenko,CFA*

Frauke Wolkewitz, CFA*

Stefan Möckel(Deputy)Tobias BritschMichael PetersPatrick Ullrich

Karsten Seier, CFA*

Jürgen Heinz

Markus KreßDr. Renata LatochaGundula OehlkeDr. Stefan Schüder

CREDITCREDIT

23

BNY Mellon Compass Fund Euro High Yield Bond Fund

6 Months YTD 1 Year 3 Years (p.a.)

5 Years (p.a.)

10 Years (p.a.)

since inception

(p.a.)Fund +6.01 +3.61 +18.69 +11.70 +9.22 +8.67 +7.82

Comp. Index +5.71 +3.57 +17.79 +11.31 +10.59 +9.17 +5.21

-5

0

5

10

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%

Periods ending 31 May 2013

50

70

90

110

130

150

170

190

210

230

250

270

290

06/0

012

/00

06/0

112

/01

06/0

212

/02

06/0

312

/03

06/0

412

/04

06/0

512

/05

06/0

612

/06

06/0

712

/07

06/0

812

/08

06/0

912

/09

06/1

012

/10

06/1

112

/11

06/1

212

/12

Monthly performance to 31 May 2013

Fund

Comp. Index

Morningstar:��TM-Rating (as of 5/2013) (A-Shares, registered funds in Germany)

● The performance shown is the BNY Mellon Compass Fund Euro High Yield Bond Fund managed by Meriten Investment Management against the given comparative index

● Comparative Index: BofA Merrill Lynch Euro High Yield Fixed Floating Rate Constrained Bond Index ex Financials; before 01/11/2009 BofA Merrill Lynch Euro High Yield Fixed Floating Rate Constrained Bond Index; before 08/09/2008 the corresponding fixed rate constrained index; before December 2002 the corresponding unconstrained index

● Inception was 30 Jun 00, and funds were managed against the given indexfrom 30 Sep 00

● The returns shown are based on gross monthly performance data in Euro

● A share class: TER per 31/10/2012 = 0.82%2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

Fund +22.36 -1.01 +14.19 +51.56 -30.20 -0.23 +10.01 +6.60 +16.06 +22.04 +2.75 +0.53

Comp. Index +23.20 -1.26 +14.51 +73.08 -33.68 -2.09 +8.90 +6.80 +14.73 +26.40 -5.12 -13.94

Excess Return -0.83 +0.25 -0.33 -21.52 +3.48 +1.86 +1.11 -0.20 +1.33 -4.36 +7.87 +14.47

-40

-20

0

20

40

60

80

%

Annual returns

Comp. Index +5.71 +3.57 +17.79 +11.31 +10.59 +9.17 +5.21

active return +0.30 +0.03 +0.89 +0.39 -1.37 -0.49 +2.61 06/0

012

/00

06/0

112

/01

06/0

212

/02

06/0

312

/03

06/0

412

/04

06/0

512

/05

06/0

612

/06

06/0

712

/07

06/0

812

/08

06/0

912

/09

06/1

012

/10

06/1

112

/11

06/1

212

/12

Past performance is no guide to future performance. Investments are subject to risk and there is no guarantee that the Fund's investment objectives will be achieved. Source: Meriten InvestmentManagement/JPMorgan/Bank of America Merrill Lynch/Morningstar/S&P. Standard & Poor's Fund Ratings represent an opinion only, not a recommendation to buy or sell

24

BNY Mellon Compass Fund Euro Corporate Bond Fund

6 Months YTD 1 Year 3 Years (p.a.)

5 Years (p.a.)

10 Years (p.a.)

since inception

(p.a.)Fund +3.39 +2.15 +10.11 +6.21 +6.88 +4.82 +5.57

Comp. Index +2.73 +1.79 +8.99 +6.01 +6.54 +4.53 +5.21

active return +0.66 +0.37 +1.12 +0.20 +0.34 +0.29 +0.36

0

2

4

6

8

10

12

%

Periods ending 31 May 2013

100

110

120

130

140

150

160

170

180

190

03/

02

09/

02

03/

03

09/

03

03/

04

09/

04

03/

05

09/

05

03/

06

09/

06

03/

07

09/

07

03/

08

09/

08

03/

09

09/

09

03/

10

09/

10

03/

11

09/

11

03/

12

09/

12

03/

13

Monthly performance to 31 May 2013

Fund

Comp. Index

• The performance shown is the BNY Mellon Compass Fund Euro Corporate Bond Fund managed by Meriten Investment Management in a consistent manner against the given index

• The Comparative Index shown is the iBoxx Euro Corporate Overall Index. Prior to 20th March 2006 the iBoxx Non-Financial Index was used

• Inception is 13 March 02

• The returns shown are based on monthly performance data, gross of fees, in Euro

• A share class: TER per 31/10/2012 = 0.57%

2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002**Fund +14.23 +1.29 +3.82 +18.19 -3.45 -0.20 +0.47 +3.72 +7.65 +7.84 +8.69

Comp. Index +13.56 +1.72 +4.73 +16.02 -3.99 -0.22 +0.34 +3.44 +7.53 +7.79 +7.43

active return +0.67 -0.42 -0.91 +2.16 +0.55 +0.02 +0.14 +0.28 +0.12 +0.05 +1.26

-5

0

5

10

15

20

%

Annual returns

03/

02

09/

02

03/

03

09/

03

03/

04

09/

04

03/

05

09/

05

03/

06

09/

06

03/

07

09/

07

03/

08

09/

08

03/

09

09/

09

03/

10

09/

10

03/

11

09/

11

03/

12

09/

12

03/

13

Past performance is no guide to future performance. Investments are subject to risk and there is no guarantee that the Fund's investment objectives will be achieved. ** since inception (not annualised); Source: Meriten Investment Management/JPMorgan/Morningstar

25

Agenda




Team & Track Record

26

Investment Philosophy and Process


Summary

Investment philosophy

� Investment philosophy and approach address the asymmetric risk/return profile of short duration corporate credit.

� Focus on the preservation of investors’ capital and compounding returns through disciplined fundamental credit research

Our aims:

� Preserve capital in challenging markets

� Achieving capital appreciation and income in positive markets without taking unnecessary risk� Achieving capital appreciation and income in positive markets without taking unnecessary risk

� Identification of bonds where liquidity will remain sufficient until maturity

� Disciplined implementation to minimise risk

“Successful management throughout the cycle”

27

Investment Process

• Qualitative analysis

• Model/scenario analysis

•

• Systematic monitoring of issuer risks & portfolio risks

• Sector weights

• Issuer weights

•

• Fundamental factors

• Technical factors

Monitoring / risk

management

Portfolioconstruction

Sector analysis

Credit and relative value

analysis

• Liquidity analysis

• Relative value analysis

& portfolio risks

• Sell discipline

• Performance measurement and attribution

• Allocation HY/IG

• Segment beta

28

Credit analysis A financial model of the company* (1)

Peugeot (Manufacturing & Sales Companies) Name of the company :

GAAP Analysts Cash deposit : 1,00%

Currency EUR Interest cost : 5,00%

Financial year end 31. Dez

Last change of the model 16.03.2009

Income Statement (costs positive, income negative,

revenues positive) 2004 2005 2006 2007 2008 2009-H1 2009-H2 2009 2010-H1

Revenues 54 745 54 887 53 789 57 132 52 705 22 720 24 165 46 885 27 620

Change in Revenues 3,9% 0,3% -2,0% 6,2% -7,7% -22,3% 3,0% -11,0% 21,6%

Gross Profit 14 427 14 271 13 473 13 782 12 223 4 517 5 406 9 923 6 491

Gross Margin 26,4% 26,0% 25,0% 24,1% 23,2% 19,9% 22,4% 21,2% 23,5%

S G & A (incl. R&D) 9 408 9 751 9 272 9 079 8 566 3 904 4 012 7 916 4 106

S G & A as a % of sales 17,2% 17,8% 17,2% 15,9% 16,3% 17,2% 16,6% 16,9% 14,9%

EBITDA 5 019 4 520 4 201 4 703 3 657 613 1 394 2 007 2 385

EBITDA margin 9,2% 8,2% 7,8% 8,2% 6,9% 2,7% 5,8% 4,3% 8,6%

Depreciation and Amortization 3 056 3 187 3 686 3 559 3 664 1 683 1 511 3 194 1 517

Recurring operating income 1 963 1 333 515 1 144 - 7 - 1 070 - 117 - 1 187 868

Operating income margin 3,6% 2,4% 1,0% 2,0% 0,0% -2,5%

Non recurring items 69 340 808 632 917 506 219 725 - 69

Operating income reported 1 963 1 333 - 293 512 - 923 - 1 576 - 336 - 1 912 799

2010e 2011e 2012e 2013e 2014e 2015e

50 636 53 168 55 826 56 384 56 948 57 518

8,0% 5,0% 5,0% 1,0% 1,0% 1,0%

11 646 13 558 14 515 14 660 14 806 14 955

23,0% 25,5% 26,0% 26,0% 26,0% 26,0%

7 595 9 570 10 049 10 149 10 251 10 353

15,0% 18,0% 18,0% 18,0% 18,0% 18,0%

4 051 3 988 4 466 4 511 4 556 4 601

8,0% 8,0% 8,0% 8,0% 8,0% 8,0%

3 599 3 477 3 419 3 405 3 401 3 404

452 511 1 047 1 105 1 155 1 197

0,9% 1,0% 1,9% 2,0% 2,0% 2,1%

452 511 1 047 1 105 1 155 1 197

WMAM ExpectationsMeriten Expectations

*All figures from 2010 to 2015 are fictitious, they are only intended to clarify the credit analysis model; This information is provided for illustrative purposes only and should not be construed as investment advice; Source: Meriten Investment Management. Past performance is not a guide to future performance.

Operating income reported 1 963 1 333 - 293 512 - 923 - 1 576 - 336 - 1 912 799

Interest expense, net including pension expenses (excluding

FX change on debt) 70 73 73 39 285 225 294 519 240

Share of net earnings of campanies at equity - 55 49 48 57 24 49 73 136

Profit before Tax 1 697 922 - 397 473 - 1 208 - 1 801 - 1 627 695

Tax expenses 347 189 101 218 156 72 72 168

Effective Tax rate 20,4% 20,5% -25,4% 46,1% -12,9% 30,0%

Net Income before minorities 1 350 589 - 328 405 - 858 - 1 240 - 459 - 1 699 527

Net Income Margin -1,6% -5,5% -3,6% 1,9%

Dividend 323 233 154 163

Retained earnings 1 027 356 - 482

Cash-Flow Statement (negative = decrease) 2004 2005 2006 2007 2008 2009-H1 2009-H2 2009 2010-H1

Funds from operations 4 602 4 258 4 027 4 446 3 216 388 1 028 1 416 1 977

Change in Working Capital 1 052 - 289 424 920 - 2 924 2 332 284 2 616 - 339

Other operating cash flow (reported OCF-calculated OCF down from

EBITDA) - 412 - 580 - 1 016 - 931 - 836

Cash Flow from operating activities reported 5 242 3 389 3 435 4 435 - 544 3 482

Capital Expenditure inclusive intangibles (net ) (-) - 3 662 - 3 853 - 3 400 - 2 689 - 3 072 - 1 660 - 1 126 - 2 786 - 1 211

capex as a % of sales -6,7% -7,0% -6,3% -4,7% -5,8% -5,9% -4,4%

Non cash interest expenses 0

Dividends Paid (-) / Dividend received (+) - 323 - 233 - 154 - 163 - 191 133 133 135

Recurring Free Cash Flow 1 669 - 117 897 2 514 - 2 971 1 060 319 1 379 562

Cash restructuring expense (-) - 550 - 91

Other extraordinary cash expense (-)

Acquisitions and Sale of Assets (- and +) - 147 15 - 18 4 - 27 - 7 2

Capital increase / Buy back of shares (+ and -) - 282 - 198 - 39 - 23 - 43 281

Free cash flow after exceptionals and Acquisit/CI 1 240 - 300 840 2 495 - 3 041 1 060 319 1 103 473

Total Period debt repayment (-) - 714 11 205 - 559 929 - 1 552

Financing surplus / Funding requirements 526 - 289 1 045 1 936 - 2 112 - 449

452 511 1 047 1 105 1 155 1 197

473 432 402 368 343 317

- 21 79 645 738 812 880

70 24 193 221 244 264

30,0% 30,0% 30,0% 30,0% 30,0% 30,0%

- 91 55 451 516 568 616

-0,2% 0,1% 0,8% 0,9% 1,0% 1,1%

2010e 2011e 2012e 2013e 2014e 2015e

3 508 3 532 3 871 3 922 3 969 4 020

375 253 266 56 56 57

3 673 3 785 4 137 3 978 4 026 4 077

- 2 988 - 3 190 - 3 350 - 3 383 - 3 417 - 3 451

-5,9% -6,0% -6,0% -6,0% -6,0% -6,0%

0 0 0 0 0 0

133 0 - 100 - 100 - 100 - 100

1 029 595 687 495 509 526

- 210

819 595 687 495 509 526

- 3 045 - 1 735 - 435 - 3 451 - 3 066 - 777

- 2 226 - 1 140 252 - 2 956 - 2 557 - 251

29

Credit analysisA financial model of the company* (2)

Liquidity at year end 2004 2005 2006 2007 2008 2009-H1 2009-H2 2009 2010-H1

Period End Cash 5 158 6 351 6 339 5 185 2 040 6 801 7 843 7 843 9 084

Total committed facilities 2 400 2 400

Liquidity (cash only) 6 801 7 843 7 843 9 084

Liquidity at Period End (cash + unused lines) 5 158 6 351 6 339 5 185 4 440 9 201 15 108 15 108 11 484

Balance sheet 2004 2005 2006 2007 2008 2009-H1 2009-H2 2009 2010-H1

Equity 13 703 14 406 14 106 14 555 13 277 12 600 12 446 12 447 13 845

Intangibles and Goodwill 5 400 5 563 5 435 5 373 5 298 5 563 5 677 5 677 6 095

Equity after goodwill and intangibles 8 303 8 843 8 671 9 182 7 979 7 037 6 769 6 770 7 750

Tangibles (Net fixed assets) + intangibles 17 770 18 795 18 643 18 537 18 125 18 382 17 995 17 995 18 803

Total assets 40 752 43 152 42 581 40 861 36 009 39 107 38 739 38 740 43 833

Total cash Debt of industrial companies 6 852 9 124 8 676 6 385 6 309 10 016 11 021 11 021 12 087

lease + pension deficit 1 249 1 334 1 334 1 334

Cash of the industrial companies 5 158 6 351 6 339 5 185 2 040 6 801 7 842 7 843 9 084

Peugeot (Manufacturing & Sales Companies) Name of the company :

GAAP Analysts Cash deposit : 1,00%Currency EUR Interest cost : 5,00%Financial year end 31. Dez

Last change of the model 16.03.2009

2 0 1 0 e 2 0 1 1 e 2 0 1 2 e 2 0 1 3 e 2 0 1 4 e 2 0 1 5 e

7 8 4 3 7 8 4 3 7 8 4 3 7 8 4 3 7 8 4 3 7 8 4 3

5 6 1 7 4 4 7 7 4 7 2 9 1 7 7 3 - 7 8 4 - 1 0 3 5

1 2 8 8 2 1 1 7 4 2 1 1 9 9 4 9 0 3 8 6 4 8 1 6 2 3 0

2 0 1 0 e 2 0 1 1 e 2 0 1 2 e 2 0 1 3 e 2 0 1 4 e 2 0 1 5 e

1 2 4 8 9 1 2 5 4 5 1 2 8 9 6 1 3 3 1 2 1 3 7 8 1 1 4 2 9 7

5 6 7 7 5 6 7 7 5 6 7 7 5 6 7 7 5 6 7 7 5 6 7 7

6 8 12 6 86 8 7 2 19 7 63 5 8 104 8 620

1 7 3 8 4 1 7 0 9 7 1 7 0 2 7 1 7 0 0 5 1 7 0 2 1 1 7 0 6 8

4 1 8 3 9 4 3 9 3 1 4 6 1 2 8 4 6 58 9 4 7 0 5 5 4 7 5 2 5

1 0 2 0 2 9 6 0 7 8 9 2 0 8 4 2 5 7 9 1 6 7 3 9 0

1 3 34 1 33 4 1 3 34 1 33 4 1 334 1 334

7 8 4 3 7 8 4 3 7 8 4 3 7 8 4 3 7 8 4 3 7 8 4 3

W M A M E x p e cta tio n sMeriten Expectations

*All figures from 2010 to 2015 are fictitious, they are only intended to clarify the credit analysis model; This information is provided for illustrative purposes only and should not be construed as investment advice; Source: Meriten Investment Management. Past performance is not a guide to future performance.

Cash of the industrial companies 5 158 6 351 6 339 5 185 2 040 6 801 7 842 7 843 9 084

Net cash debt including off B/S 5 518 4 549 4 513 4 512

Net cash debt 1 694 2 773 2 337 1 200 4 269 3 215 3 179 3 178 3 003

Market Cap 0 0 0 0 0 0

Enterprise Value 1 694 2 773 2 337 1 200 4 269 3 179 3 178

Ratios 2004 2005 2006 2007 2008 2009-H1 2009-H2 2009 2010-H1

Net debt / Equity 12,36% 19,25% 16,57% 8,24% 32,15% 25,52% 25,54% 25,53% 21,69%

Equity / Total assets 33,63% 33,38% 33,13% 35,62% 36,87% 32,22% 32,13% 32,13% 31,59%

Tangible fixed assets to net debt 1049,00% 677,79% 797,73% 1544,75% 424,57% 571,76% 566,06% 566,24% 626,14%

Net cash debt / EBITDA 0,3 0,6 0,6 0,3 1,2 2,6 1,1 1,6 0,8

Net cash debt including off B/S / EBITDA 1,5 2,2

FCF / Net debt 98,52% -4,22% 38,38% 209,50% -69,59% 32,97% 10,03% 43,39% 18,71%

Funds from operations/ net debt 271,66% 153,55% 172,31% 370,50% 75,33% 12,07% 32,34% 44,56% 65,83%

EBITDA / Net Interest expenses 71,7 61,9 57,5 120,6 12,8 0,0 0,0 3,9 0,0

EBITDA / Net cash Interest expenses 71,7 61,9 57,5 120,6 12,8 2,7 4,7 3,9 9,9

Enterprise Value / EBITDA 0,3 0,6 0,6 0,3 1,2 0,0 2,3 1,6 0,0

7 8 4 3 7 8 4 3 7 8 4 3 7 8 4 3 7 8 4 3 7 8 4 3

3 6 9 3 3 0 9 8 2 4 1 1 1 9 1 6 1 4 0 7 8 8 1

2 3 5 9 1 7 6 4 1 0 7 7 5 8 2 7 3 - 4 5 3

0 0 0 0 0 0

2 3 5 9 1 7 6 4 1 0 7 7 5 8 2 7 3 - 4 5 3

2 0 1 0 e 2 0 1 1 e 2 0 1 2 e 2 0 1 3 e 2 0 1 4 e 2 0 1 5 e

1 8 .8 9 % 1 4 .0 6 % 8 .3 5 % 4 .3 7 % 0 .5 3 % -3 .1 7 %

2 9 .8 5 % 2 8 .5 6 % 2 7 .9 6 % 2 8 .5 7 % 2 9 .2 9 % 3 0 .0 8 %

7 3 6 .8 4 % 9 6 9 .2 5 % 1 5 8 1 .0 8 % 2 9 2 0 .2 1 % 2 3 1 8 1 .8 6 % -3 7 7 1 .6 7 %

0 .6 0 .4 0 .2 0 .1 0 .0 -0 .1

4 3 .6 1 % 3 3 .7 5 % 6 3 .7 9 % 8 4 .9 4 % 6 9 3 .1 0 % -1 1 6 .2 3 %

1 4 8 .7 1 % 2 0 0 .2 4 % 3 5 9 .4 2 % 6 7 3 .5 0 % 5 4 0 6 .2 5 % -8 8 8 .3 7 %

8 .6 9 .2 1 1 .1 1 2 .3 1 3 .3 1 4 .5

8 .6 9 .2 1 1 .1 1 2 .3 1 3 .3 1 4 .5

0 .6 0 .4 0 .2 0 .1 0 .0 -0 .1

Analysis of the liquidity situation until maturity – Key f or Credit Short Duration• Liquidity development

• Viability of Refinancing

• Financial covenants

• Free cash flow generation

30

Portfolio construction

Credit risks are managed at two levels Basis for deci sion

• Allocation between high yield and investment grade

• Cyclical vs. non-cyclical names

• Mainly fundamentals, taking into account relevant top-down factors such as:- Business climate indicators- Lending standards

- Expected default rates

• Complemented by quantitative tools (monthly and weekly analysis of signals)

Portfolio Construction: Managing the credit risk of the portfolio

31

Portfolio constructionQuantitative tool supports allocation and beta management

Signals and OAS: Current signal NEGATIVE

EU USA 1 Month 3 Months 1 Month 3 Months

POSITIVE NEGATIVE NEGATIVE POSITIVE NEGATIVE NEGATIVE

-1 1 1 -1 1 1

NEUTRAL NEGATIVE

Cyclical Momentum Volatility

200

Combined Momentum Combined VolatilityCombined Cyclical

NEUTRAL1500

2000

2500

0

0,5

1

1,5

2

bps

sign

al s

tren

gth

signal "spreads increase" signal "Spreads decrease" Spread

Tool combines fundamental and technical indicators

POSITIVE means decrease in spreadNEGATIVE means increase in spread

Combined Total (4-Weeks-Moving Average)

200

Combined Cyclical Combined Momentum Combined Volatility

0 2

Spread Direction: Signal Strength: Signal Score

NEGATIVE LOW 0.67

0

0

500

1000

-2

-1,5

-1

-0,5

0

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

bps

sign

al s

tren

gth

Source: Meriten Investment Management; as of 07/05/2012; Note: This information is provided for illustrative purposes only and should not be construed as investment advice. Past performance is not a guide to future performance.

32

Active allocation between both segments depending on theeconomic cycle

60%

70%

80%

90%

100%

weight

Allocation between HY and IG since inceptionHY IG

Source: Meriten Investment Management; as of 31/05/2013; Please note: portfolio holdings are subject to change at any time without notice.

0%

10%

20%

30%

40%

50%

60%

Jun 11 Aug 11 Oct 11 Dec 11 Feb 12 Apr 12 Jun 12 Aug 12 Oct 12 Dec 12 Feb 13 Apr 13

33

Risk management

Single issue level Portfolio level

• Continuous review of whether information on the company and its environment require a change to the original view

• Max 5% per issuer, max 25% per sector

• Review e.g. in the financial model • Weekly internal performance analysis in order to identify potential vulnerabilities at an early stage

• Review of the liquidity situation of the company • Portfolio risk analysed by Portfolio Management with the support of high-performance software (Barclays Point)

Risk management and monitoring

support of high-performance software (Barclays Point)

• Sell discipline: Only in case of high probability of default • Risk analysis performed by Risk Controlling independently of Portfolio Management (Quantaxsystem)

34

Agenda




Team & Track Record


35


Summary


Fund Strategy

Current allocation at 80% HY / 20 % IG

Thorough monitoring of bonds from peripheral countries for risk management

Longer maturities for non-cyclical names

As of June 2013; Please note: portfolio holdings are subject to change at any time without notice, are for information purposes only and should not be construed as investment recommendations. This information should not be construed as a recommendation to purchase or sell any security; Return targets cannot be guaranteed.

Exposure in cyclical high yield names is mainly limited until 2014

Maintenance of a yield above 4% as a target, but most important target remains the capital preservation/ growth with avoidance of unnecessary risks

Maintenance of a high part of short-term bonds with a remaining life time less than 2 years for fund volatility management purposes

Strong focus on volatility figuresEx-ante volatility target of less than 4% (currently 2.0%)

Ex-post volatility figure of 3.0% since inception (01/06/2011)

36

Portfolio structure (1)BNY Mellon Compass Fund Euro Credit Short Duration Fund

Sector structure (*1)

Rating structure (*1)

Yield to maturity (*2) 2.76%Duration 1.42

No. of bonds 105No. of issuers 74

Important indicators 17.4%

16.5%

12.9%

11.0%

9.9%

6.8%

5.5%

Industrial Goods & Services

Automobiles & Parts

Basic Resources

Utilities

Health Care

Banks

Telecommunications

0.4%

18.5%

53.0%

25.9%

2.2%

A BBB BB B Liquidity

Please note: portfolio holdings are subject to change at any time without notice, are for information purposes only and should not be construed as investment recommendations. This information should not be construed as a recommendation to purchase or sell any security; Return targets cannot be guaranteed. This information should not be construed as a recommendation to purchase or sell any security; Return targets cannot be guaranteed. Source: Meriten Investment Management; as of 31/05/2013(*1) : excluding CDS, (*2) including CDS

3.4%

3.3%

2.9%

2.4%

2.2%

2.1%

1.0%

0.3%

0.1%

2.2%

Food & Beverage

Oil & Gas

Chemicals

Technology

Packaging

Travel & Leisure

Retail

Construction & Materials

Media

Liquidity

37


Maturity structure

21.0%

16.4%

12.3%

12.0%

8.2%

4.8%

4.5%

4.1%

France

Germany

Italy

Portugal

Spain

USA

Luxembourg

Mexico

Country of Risk Structure (*1)

4.1%

3.6%

2.8%

2.1%

1.9%

1.5%

0.9%

0.9%

0.8%

0.2%

2.2%

Mexico

Denmark

UK

Hungary

Finland

Japan

Netherlands

Ireland

Russia

Switzerland

Liquidity

11.7%

42.1%

25.5%

18.6%

2.2%

2013 2014 2015 2016 Liquidity

Please note: portfolio holdings are subject to change at any time without notice, are for information purposes only and should not be construed as investment recommendations. This information should not be construed as a recommendation to purchase or sell any security; Return targets cannot be guaranteed. This information should not be construed as a recommendation to purchase or sell any security; Source: Meriten Investment Management; as of 31/05/2013(*1) : excluding CDS

38


Top ten holdings (*1)

PHOENIX PHARMA 4.5%

PEUGEOT 4.3%

CEMEX 4.1%

HEIDELBERG CEMENT 3.9%

FIAT 3.7%

ISS 3.4%

Please note: portfolio holdings are subject to change at any time without notice, are for information purposes only and should not be construed as investment recommendations. This information should not be construed as a recommendation to purchase or sell any security; Return targets cannot be guaranteed. This information should not be construed as a recommendation to purchase or sell any security; Source: Meriten Investment Management; as of 31/05/2013 (*1) : excluding CDS

ISS 3.4%

CEGEDIM 3.3%

LAFARGE 3.2%

EDP 3.1%

WENDEL 3.0%

39

Agenda




Team & Track Record


40


Summary

Summary

Attractive risk/return profile Attractive risk/return profile

Low Interest rate and spread duration risk Low Interest rate and spread duration risk !

4% yield medium to long term target with a volatili ty of less than 4%4% yield medium to long term target with a volatili ty of less than 4%

Active allocation between IG and HY assets offers a dditional return potential Active allocation between IG and HY assets offers a dditional return potential

!

!

!

Defensive, stable returns in all market conditionsDefensive, stable returns in all market conditions !

Why Euro Credit Short Duration?Key aims:

Note: Past performance is not a guide to future performance.

Fundamental forward looking credit analysis forms t he core of a bottom-up-oriented investment processFundamental forward looking credit analysis forms t he core of a bottom-up-oriented investment process

Excellent track record in credit management of more than 12 yearsExcellent track record in credit management of more than 12 years

No defaults since launch of high yield products in the year 2000! No defaults since launch of high yield products in the year 2000!

A strong team: 13 European corporate bond specialis tsA strong team: 13 European corporate bond specialis ts

Proprietary quantitative tool supports the asset al location and risk decisions in the portfolioProprietary quantitative tool supports the asset al location and risk decisions in the portfolio

Why Euro Credit Short Duration with Meriten Investme nt Management?

!

!

!

!

!

41

Appendix

Credit Outlook: Key topics

Opportunities

Low expected default

Low corporate leverage

Loose lending standards

Low market volatility

Risks

Uncertain growth outlook

Less quantitative easing

Greece and Cyprus news flow

Country rating downgrades(Spain, UK, US, France,…)

Budget deficit periphery countries

Source: Meriten Investment Management; 06/2013

Low market volatility

Expansionary monetary policy

Search for yield

Budget deficit periphery countries

Election (Germany)

Tightening government spending

Fiscal cliff USA

Spread tightening Spread widening

43

30

40

50

60

70

80

Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13

Economic SentimentImprovement since May 2013

US Chicago Purchasing Manager Index

60

70

80

90

100

110

120

Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13

44

Source: Bloomberg; 05/2013

European Commission Economic Sentiment Indicator EU27

-150

-100

-50

0

50

100

Feb 06 Feb 07 Feb 08 Feb 09 Feb 10 Feb 11 Feb 12 Feb 13

Citigroup Economic Surprise IndexReduction in USA, slight improvement in Europe

USA

45

Source: Bloomberg; Citigroup; 05/2013

Europe

-200

-150

-100

-50

0

50

100

150

Feb 06 Feb 07 Feb 08 Feb 09 Feb 10 Feb 11 Feb 12 Feb 13

Percentage of issuers

• Default rates per end of April 2013 globally 2.6% (USA: 3.1%, Europe: 2.0%)

• Peak of default rate cycle: December 2009 (global: 13.00%, Europe: 10.30%)

• Forecast per end of April 2014: 2.5% global (long term average 4.5%)

Global speculative grade default rates by Moody’sStrong improvements since 2009

14

16

18

46

Source: Meriten Investment Management, Moody‘s, Bloomberg, 04/2013

0

2

4

6

8

10

12

1930

1932

1934

1936

1938

1940

1942

1944

1946

1948

1950

1952

1954

1956

1958

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

Forecast per end of2013: global 2.9%

Forecast per end of April 2014: global 2.5%

„Fiscal Cliffs“ also in Europe

Budget Balances, in % GDP (2012-14: prognosis EU Com mission)

-15

-10

-5

0Greece Ireland Portugal France Italy Spain Germany

3.3%pts 3.1%pts

4.0%pts

7.3%pts

(cumulatedtargeted improvement

from 2009 to 2014)

3.6%pts

9.7%pts12.1%pts

• Consolidation is necessary but does not suffice to end the crisis

• Consolidation targets appear increasingly unachievable in the time prescribed

• Reform enthusiasm has cooled in many countries – the question of democratic legitimation of all the bailout measures and conditions moves into the foreground

• Political risks are increasing the more, and the more rapidly living standards decline

• Multiplier effect between 0.9 and 1.7

47

Source: Meriten Investment Management, Ecowin, 05/2013

-20

2009 2010 2011 2012E 2013E 2014E

2014)

450

500

550

600

650

7005Y CDS Italy 5Y CDS ISPIM

480

530

580

630

6805Y CDS Spain 5Y CDS Banco Santander

Risk premiums of corporate bonds significantly influenced by the development of risk premiums of respective countries

Example from SpainBSP BSP

Example from Italy

100

150

200

250

300

350

400

05/11 09/11 01/12 05/12 09/12 01/13 05/13180

230

280

330

380

430

05/11 09/11 01/12 05/12 09/12 01/13 05/13

48

This information is provided for illustrative purposes only and should not be construed as investment advice.Source: Bloomberg, Meriten Investment Management; 05/2013

Spain: -1 BPS

Italy: +107 BPS

ISPIM: +149 BPS

Banco Santander: +51 BPS

700

800

900

1,000

1,1005Y CDS Spain ONO 12/2018

450

500

550

600

650

7005Y CDS Spain Telefonica 09/2017

Risk premiums of corporate bonds significantly influenced by the development of risk premiums of respective countries

BSP BSP

ONO:

Examples from Spain

49

200

300

400

500

600

05/11 09/11 01/12 05/12 09/12 01/13 05/13100

150

200

250

300

350

400

05/11 09/11 01/12 05/12 09/12 01/13 05/13

This information is provided for illustrative purposes only and should not be construed as investment advice.Source: Bloomberg, Meriten Investment Management; 05/2013

Spain: -1 BPS

ONO: +131 BPS

Telefonica: +36 BPS

Spain: -1 BPS

Expansionary monetary policy supports risky asset classes

Policy rates of major central banks, %

50

150

250

350

450

550January 2007 = 100

0

2

4

6

8

00 02 04 06 08 10 12

Central banks: balance sheet totals (% GDP)

50

• Policy rates likely to stay very low for a long time

• Quantitative easing like OMT (ECB) and QE3 (Fed) dampens systemic risk …

• … and fuels the rally of risky assets

Source: Meriten Investment Management, Ecowin, 05/2013

502007 2008 2009 2010 2011 2012 2013

ECB Fed BoJ BoE

00 02 04 06 08 10 12

Fed EZB BoE SNB

European HY bond fund flows

Fund flow data shows recent inflows in high yield

51

This information is provided for illustrative purposes only and should not be construed as investment advice.Source: BNP Paribas, Bloomberg, Meriten Investment Management; 02/2013

Profit and leverage ratios of companies

Corporate Profits at a high levelCorporate profits & wage share, in % of GVA*

Low leverage in USA, increase in EuropeNet debt/ EBITDA ratio w. scenario forecasts**

1,6

1,8

2

2,2

2,4

2,6S&P Non-Financials

EuroStoxx Non-Financials

64%

66%

68%

70%

12%

16%

20%

24%

28%

32%Profits

52

• The credit quality of companies has improved significantly over the last three years.

• The earnings season for Q1 2013 showed some weakness for cyclical companies, while non-cyclical company results were in line with expectations. The outlook continues to be cautious for 2013 especially for the European business units.

Source: Citi, CIRA, Haver Analytics, Bloomberg; * As of end of 09/2012; ** As of end of 09/2012

1

1,2

1,4

1,6

98 99 00 01 02 03 04 05 06 07 08 09 10 11 1260%

62%

64%

0%

4%

8%

12%

1970 1980 1990 2000 2010

Wages

Percentage of Commercial and Industrial Lenders Tightening

• Recently easing of lending standards

• So far no indication of significantly rising default rates

10

15

20

50

75

100Percentage Moody’s global default rates (right-hand scale)

C&I Lenders Tightening Standards (FED)Survey Change in Lending to Business (ECB)

Default Rates

Forecast per end of

Source: Meriten Investment Management, Moody‘s, Fed, ECB, Bloomberg; 04/2013

53

-5

0

5

-25

0

25

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Forecast per end of2013: global 2.9%

Forecast per end of April 2014:global 2.5%

The Corporate Credit Cycle US ahead of Europe

54

This information is provided for illustrative purposes only and should not be construed as investment advice.Source: BNP Paribas, Bloomberg, Meriten Investment Management; 02/2013. Past performance is not a guide to future performance.

1,500

2,000

2,500

15

20

25

Percent Base points

USAEurope

(rhs)

Default rates (lhs)

Default rates and spreadsGlobal default rates in comparison to US* and Euro High Yield** spreadsUSA Long-term average: 559 bps (end of 1986 – end of 05/2013)

55

0

500

1,000

0

5

10

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

436 bps***

* Spread BofA Merrill Lynch US High Yield Master II Constrained Index compared to US Treasuries; ** Spread BofA Merrill Lynch Euro High Yield Bond Fixed Floating Rate Constrained Index ex Financials; before 2007 the BofA Merrill Lynch Euro High Yield Bond Fixed Rate Constrained Index; *** Index composition 06/2013; Source: Moody’s, Meriten Investment Management; As of 05/2013

462 bps***US Average : 559 bp

Forecast per end of April 2014: global 2.5%

US and Europe spread move parallel since 2002

Development of short-duration corporate bond spreads

1000

1500

2000

2500

3000

3500

US HY 1 - 3 Years* Euro HY1 Month - 3.5 Years**

Euro Corporates Non-Financial1 - 3 Years***

Base points

* Spread BofA Merrill Lynch High Yield US Corporates Cash Pay 1-3 Years Index over US Treasuries; ** BofA Merrill Lynch Euro High Yield Non-Financials BB1-B3 1 mo-3.5 Yrs Index over US Treasuries (inception at 31/12/2008); *** Spread iBoxx € Corporate Non-Financial 1- 3 Years Index over benchmark bonds; Source: Bank of America Merrill Lynch, Bloomberg, DB Index Quant; asof 31/05/2013 Please note: Past Performance is no guide to future performance.

0

500

Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12

Average(1999-2013)

High Low 31/05/2013

Euro CorporatesNon-Financial 1-3 Years

109 367 28 79

US HY1-3 Years

766 3280 188 502

Euro HY1 Month - 3,5 Years**

533 1798 248 248

base points

56

Conclusion

• The credit quality of companies has improved significantly over the last three years and is at a solid level.

• The earnings season for Q1 2013 has started showing some weakness for cyclical companies, while non-cyclical company results were in line with expectations. The outlook continues to be cautious for 2013 especially for the European business units.

• Our core scenario remains a moderate global growth in 2013.

• The market is supported by technicals such as the search for yield and inflows in the market.

• No sign of significantly rising default rates. • No sign of significantly rising default rates.

• The volatility has decreased since the EU actions for crisis management. However, the volatility could increase again due to the sovereign debt risk in Europe, the still uncertain growth outlook and less quantitative easing.

• Spreads are slightly below their long term average.

This information is provided for illustrative purposes only and should not be construed as investment advice.The achievement of targets can not be guaranteed. Past performance is not indicative of future performance.

57

Corporate CreditCorporate Credit – Investment Grade

Matthias Lackmann, CFA*

• Responsibilty/ sectors covered: Telecommunications, media, technology

• Industry experience: 6 years

Olga Lepp

• Responsibilty/ sectors covered: Automobiles & parts, construction & buildingmaterials, retail, personal & houshold goods

Henning Lenz Head of Corporate Credit Team

• Responsibilty/ sectors covered:Corporate credit strategy


Bastian Gries, CFA* Head of Investment Grade Team• Responsibilty/ sectors covered:

Investment grade fund strategy, banks, food & beverages

* CFA© and Chartered Financial Analyst© are registered trademarks owned by CFA Institute.

Maik Ohm, CFA*

• Responsibilty/ sectors covered: Industrial goods & -services, chemicals, travel & leisure, insurance companies


Tim Frankenheim, CFA*

• Responsibilty/ sectors covered: Banks, healthcare, commodities



Elena Romanenko

• Responsibilty/ sectors covered:Utilities, oil & gas, financial services


food & beverages


58

Corporate CreditCorporate Credit – High Yield

Alexis Renault, CFA*Head of High Yield Team� Responsibilty/ sectors covered:

High yield fund strategy, media, chemicals, automobiles & parts

Thomas Rentsch, CFA*� Responsibilty/ sectors covered:

Utilities, energy, commodities

� Industry experience: 8 years

Henning LenzHead of Corporate Credit Team� Responsibilty/ sectors covered:

Corporate credit strategy


Martin Dreier� Responsibilty/ sectors covered:

Financial services, industrial goods & -services


The sector personal & household goods is covered by all team members.* CFA© and Chartered Financial Analyst© are registered trademarks owned by CFA Institute.

automobiles & parts


Ovidiu-Bogdan Covaciu� Responsibilty/ sectors covered:

Retail, food & beverages, technology, commodities, healthcare



Frauke Wolkewitz, CFA*� Responsibilty/ sectors covered:

Travel & leisure, telecommunications – fixedline, cable TV


Ivan Romanenko, CFA*� Responsibilty/ sectors covered: Financial

services, packaging


59

AppendixMeriten Investment Management GmbH – Composite Performance (1) Glossary / GIPS® Compliance Verification Statement*

Definition of the FirmWestLB Mellon Asset Management Kapitalanlagegesellschaft mbH ("WMAM KAG") manages segregated and mutual funds in accordance with the German Investment Act (Investmentgesetz; InvG). The definition of the firm within the meaning of the Global Investment Performance Standards (GIPS) includes the funds established by WMAM KAG as well as its advisory or investment management services rendered to invest-ment funds managed by third parties.

History and ownership structureWestLB Mellon Asset Management Kapitalanlagegesellschaft mbH is a subsidiary of WestLB Mellon Asset Management Holding Ltd., jointly and equally owned by WestLB AG and Bank of New York Mellon Corpo-ration, Inc., (BNY Mellon).

The joint venture was formed on 1 April 2006. Prior to this, WMAM KAG operated under the name WestAMKAG. Since 1998, all investment activities of WestLB were combined in WestAM. However, the experience of WestLB in institutional asset management dates back to 1969.

The change in the ownership structure seen in 2006 has not led to any changes to the investment processes applied.

FeesManagement fees for institutional clients are generally negotiated on a case-by-case basis and depend on the product and the complexity of the individual mandate. Usually, fees range from 10 to 60 basis points.

The current fee schedule for the mutual funds is available under www.wmam.com.

GIPS® Compliance Verification Statement

Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft confirms to the entity named WestLB Mellon Asset Management Kapitalanlagegesellschaft mbH that for the period from 1 January 2000 through 31 December 2011

(1) the entity complied with all composite structure requirements of the GIPS® on a firm-wide basis, and

(2) the entity designed its processes and procedures to calculate and present performance results in compliance with the GIPS®.

Eschborn/Frankfurt am Main, 4 June 2012 Ernst & Young GmbH

* This GIPS disclosure was approved before the name change from WestLB Mellon Asset Management to Meriten Investment Management.

applied.

Application of GIPS2007 is the first year in which WMAM KAG claimed compliance with the GIPS (“Compliance”). The compli-anceclaim refers to the aforementioned definition of the firm and the period between 2000 and 2011.

Calculation method and valuationReturns are calculated monthly on a time-weighted basis (BVI method). Annual performance figures are determined by linking the monthly returns geometrically.

Portfolios are valued at least on a monthly basis at market values (trade date). Performance is including in-terest claims and capital gains.

Gross-of-fee returns are calculated gross of all costs and fees (management fee, custodian fee, auditing and publishing fees etc.) with the exception of transaction costs. Net-of-fee returns are calculated net of all fees.

The dispersion shown is measured as standard deviation of annual returns of all portfolios represented within the Composite for the full year.

Additional information regarding the methods used for calculating returns and determining valuations is available upon request.

Wirtschaftsprüfungsgesellschaft

MiscellaneousUnless a launch date is given for a composite, the composite was created upon producing the presentations for the first time in 2007.

Unless reference is made to currency conversion, all funds contained in the composite are denominated in the same currency.

Carve-outs were created for the first time in 2007. Cash is allocated to the respective carve-out returns based on a fixed percentage of the portfolio’s assets. Detailed information is available upon request.

A complete list of all composites is available upon request. As of 1 January 2010, the entire composite structure was reorganised, resulting in some composites being aggregated that had previously been presented separately. An overview of the composites concerned is available upon request. In addition, notes to this effect have been included in the respective composite presentations.

60

AppendixMeriten Investment Management GmbH – Composite Performance (2) Relevant Composites*

Composite

Benchmark

Performance Type

Effective Date

Start Date

Currency

CompositeBench-

markDifference Quantity NAV (Mio) % of AuM

Jun 11 - Dec 11 -0,30 N/A N/A 4 168 0,72 N/A

CompositeBench-

markDifference Composite

Bench-

mark

Jun 11 - Dec 11 -0,30 N/A N/A 4,26 N/A N/A N/A

WestLB Mellon Asset Management KAG - Composite Performance

N/A

Corporate Bond - Short Duration

Dispersion*

Gross Performance

31 Dez 2011

01 Jun 2011

EUR

Performance in %

Year

Mandates (period-end)

Tracking

Error in %Time Period

Performance p.a.** in %Information

Ratio

Volatility in %

Composite

Benchmark

Performance Type

Effective Date

Start Date

Currency

CompositeBench-


2011 -0,18 -0,16 -0,01 3 133 0,57 N/A

2010 13,70 12,61 1,08 2 120 0,49 N/A

2009 43,15 60,18 -17,04 2 107 0,47 N/A

2008 -25,15 -32,21 7,06 1 66 0,30 N/A

Sep 07 - Dec 07 1,06 -0,16 1,22 1 100 0,34 N/A

CompositeBench-


Bench-

mark

1 Year -0,18 -0,16 -0,01 10,09 10,89 1,20 -0,01

2 Years 6,53 6,03 0,50 8,97 9,09 1,18 0,42

3 Years 17,56 21,67 -4,11 10,97 12,49 3,22 -1,28

Sep 07 - Dec 11 4,87 4,67 0,20 13,35 15,84 4,18 0,05


BofAML Euro Fixed & Floating Rate High Yield Non-Financial BB-B 3% Constrained

(HEAG) (since Jan 01, 2010)

European High Yield non CCC (Non-Financial)

Dispersion*

Gross Performance

31 Dez 2011

01 Sep 2007

EUR

Performance in %

Year


Tracking



Ratio

Volatility in %


The composite comprises all portfolios consistently and discretionarily managed based on the "Corporates - Short Duration". The

term of the individual bonds is up to 3.5 years. To increase the rate of return also Sell Protection CDS with a term to maturity below

one year can be used. Details are available upon request.

WestLB Mellon Asset Management

Kapitalanlagegesellschaft mbH

Elisabethstraße 65

40217 Düsseldorf

WestLB Mellon Asset Management Kapitalanlagegesellschaft mbh claims compliance with the Global Investment

Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. WestLB

Mellon Asset Management Kapitalanlagegesellschaft mbh has been independently verified for the periods 2000-2011. The

verification reports are available upon request.

Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS

standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance

in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

GIPS® is a registered trademark of CFA Institute. CFA Institute has not been involved in the preparation or review of this

report/advertisement

** Not annualised for periods shorter than one year.

* Calculation is made only at three or more continuously in a composite contained funds.

The composite comprises all portfolios that are consistently and discretionarily managed based on the European High Yield (Non-

Financial) investment process against the BofAML Euro Fixed & Floating Rate High Yield Non-Financial BB-B 3% Constrained Index

(HEAG) and therefore don't invest in CCC bonds. As a result of a change in the investment process to Non-Financials this composite

was renamed (former name: European High Yield Core (non CCC)) and the benchmark has been changed as of 1 January 2010.

Prior, the composite had an asset-weighted benchmark (indices: BofAML Euro Fixed & Floating Rate High Yield BB-B 3%

Constrained (HEAC) and BofAML Euro High Yield BB-B Constrained (HECO)). Further details are available upon request.

The funds in the composite are administrated at several entities. Therefore it is possible that different rates for securities and

currencies are applied within the composite. The significance of the presentation shouldn't be negatively impacted due to this.

Details of differences are available on request.



Elisabethstraße 65

40217 Düsseldorf












Benchmark History: Asset Weighted Account Derived Benchmark (inception - Dec 31, 2009)

61


Composite

Benchmark

Performance Type

Effective Date

Start Date

Currency

CompositeBench-


2011 -1,00 -1,24 0,24 10 952 4,10 0,16

2010 14,31 14,52 -0,21 13 1.184 4,85 0,20

2009 51,37 73,80 -22,43 11 1.081 4,74 0,77

2008 -29,94 -33,81 3,87 14 1.122 5,13 0,62

2007 -0,31 -2,13 1,82 16 2.106 7,09 0,21

2006 9,89 8,92 0,97 18 2.238 3,77 2,87

2005 6,68 6,83 -0,14 15 1.100 1,97 0,06

2004 15,95 14,75 1,20 6 367 0,75 0,18

2003 22,02 26,43 -4,41 5 169 0,37 0,02

2002 2,74 -5,21 7,95 3 47 0,11 N/A

2001 0,53 -13,94 14,46 2 28 0,07 N/A

Jul 00 - Dec 00 1,96 -13,64 15,60 2 20 0,05 N/A

CompositeBench-


Bench-

mark


BofAML Euro Fixed & Floating Rate High Yield Non-Financial 3% Constrained

(HEAE) (since Jan 01, 2010)

European High Yield (Non-Financial)

Dispersion*

Gross Performance

31 Dez 2011

01 Jul 2000

EUR

Performance in %

Year


Tracking



Ratio

Volatility in %

Composite

Benchmark

Performance Type

Effective Date

Start Date

Currency

CompositeBench-


2011 -2,81 -2,56 -0,25 3 186 0,80 0,60

2010 14,42 14,52 -0,10 5 352 1,44 0,47

CompositeBench-


Bench-

mark

1 Year -2,81 -2,56 -0,25 11,92 12,40 1,19 -0,21

2 Years 5,45 5,63 -0,18 11,01 11,49 1,71 -0,10

Jan 10 - Dec 11 5,45 5,63 -0,18 11,01 11,49 1,71 -0,10


Asset Weighted Account Derived Benchmark (since inception)

European High Yield (incl. Financials)

Dispersion*

Gross Performance

31 Dez 2011

01 Jan 2010

EUR

Performance in %

Year


Tracking



Ratio

Volatility in %


mark mark

1 Year -1,00 -1,24 0,24 10,84 11,60 1,22 0,20

2 Years 6,38 6,35 0,04 10,08 9,87 1,62 0,02

3 Years 19,65 25,26 -5,61 12,36 14,00 4,09 -1,37

5 Years 3,65 4,95 -1,30 14,57 16,18 3,98 -0,33

10 Years 7,38 7,37 0,01 10,92 12,57 4,30 0,00

Jul 00 - Dec 11 6,61 3,67 2,94 10,97 14,17 6,14 0,48

The composite comprises all portfolios consistently and discretionarily managed based on the European High Yield (Non-Financial)

investment process against the BofAML Euro Fixed & Floating Rate High Yield Non-Financial 3% Constrained Index (HEAE). The

composite contains two funds (one without a benchmark, another with an absolute return benchmark), which don't have the prior

called index as a benchmark, but are discretionarily managed based on the core investment process. Therefore, both funds are

allocated to the composite. Prior to 2010, the composite was named "European High Yield Core". After that the name and the

benchmark of the composite have been changed caused by changes in the investment process.






Elisabethstraße 65

40217 Düsseldorf











The Composite contains funds that are denominated in Non-Euro Currency. The returns have been calculated into Euro using WM-

Reuters spot rates.

The composite contained funds with a bundled fee. A recalculation of the included transaction cost couldn't applied, therefore the

funds have been included net of fee in the gross of fee calculation. Therefore, the composite performance is net of transaction costs.

These funds have the following share in the composite market value. 2005: 3%, 2006: 2%, 2007: 3%, 2008: 4%, 2010: 9%


Benchmark History: Asset Weighted Account Derived Benchmark (Jan 01, 2007 - Dec 31, 2009); BofAML Euro High Yield

Constrained (HECO) (Dec 01, 2005 - Dec 31, 2006); BofAML Euro High Yield Unconstrained (inception - Nov 30, 2005)

The composite comprises all portfolios consistently and discretionarily managed based on the European High Yield (incl. Financials)

investment process against the BofAML Euro Fixed & Floating Rate High Yield 3% Constrained Index (HEAC) or the BofAML Euro

High Yield Constrained Index (HECO). Before the inception of this composite the funds were allocated to the former composite

European High Yield Core. As a result of changes in the investment process this composite was newly created as of 1 January 2010.






Elisabethstraße 65

40217 Düsseldorf











The Composite contains funds that are denominated in Non-Euro Currency. The returns have been calculated into Euro using WM-

Reuters spot rates.


62


Composite

Benchmark

Performance Type

Effective Date

Start Date

Currency

CompositeBench-


2011 1,20 1,73 -0,53 10 691 2,97 0,14

2010 3,91 4,74 -0,83 12 870 3,56 0,16

2009 16,46 15,64 0,82 13 907 3,97 1,17

2008 -2,44 -3,90 1,47 11 708 3,24 0,93

2007 -0,20 -0,23 0,03 9 479 1,61 0,07

2006 0,46 0,55 -0,09 8 335 0,56 0,00

2005 3,95 4,11 -0,16 4 172 0,31 0,66

2004 7,78 7,71 0,08 4 170 0,35 0,32

2003 6,79 6,99 -0,20 3 130 0,28 N/A

2002 8,84 8,03 0,80 4 210 0,50 5,86

2001 6,59 6,68 -0,09 5 146 0,35 0,51

2000 6,12 5,76 0,35 3 80 0,19 N/A


Asset Weighted Account Derived Benchmark (since inception)

Corporate Bond IG All (Financials and Non-Financials)

Dispersion*

Gross Performance

31 Dez 2011

01 Jan 2000

EUR

Performance in %

Year


Performance p.a.** in % Volatility in %

Composite

Benchmark

Performance Type

Effective Date

Start Date

Currency

CompositeBench-


2011 3,40 3,94 -0,55 12 560 2,41 0,45

2010 4,78 5,13 -0,35 14 578 2,37 0,26

2009 15,47 16,13 -0,66 15 875 3,84 0,76

2008 2,81 0,91 1,90 10 536 2,45 0,88

2007 0,58 0,72 -0,13 7 526 1,77 0,03

2006 0,41 0,52 -0,11 7 451 0,76 0,00

2005 3,54 3,45 0,08 10 681 1,22 0,15

2004 7,56 7,50 0,06 14 742 1,52 0,09

2003 7,61 7,82 -0,21 13 591 1,30 0,09

2002 9,08 7,37 1,71 10 301 0,72 N/A

Apr 01 - Dec 01 3,58 4,35 -0,77 2 42 0,10 N/A

Bench- Bench-


iBoxx Euro Corporate Non-Financial (R)

Corporate Bond IG Non-Financial

Dispersion*

Gross Performance

31 Dez 2011

01 Apr 2001

EUR

Performance in %

Year


Tracking



Ratio

Volatility in %


CompositeBench-


Bench-

mark

1 Year 1,20 1,73 -0,53 5,53 5,16 0,84 -0,63

2 Years 2,55 3,22 -0,68 4,68 4,31 0,82 -0,82

3 Years 6,99 7,21 -0,22 4,86 4,69 0,93 -0,23

5 Years 3,58 3,39 0,19 4,77 4,87 1,02 0,19

10 Years 4,54 4,41 0,14 3,86 3,93 0,80 0,17

Jan 00 - Dec 11 4,84 4,71 0,14 3,66 3,73 0,75 0,18

The composite contains all funds that are consistently and discretionary managed against iBoxx Euro Corporate Index or ML EMU

Corporate index according to the standard investment process. The benchmark of the composite is the asset weighted average of

the fund benchmarks. Details of the benchmark composition are available upon request.




Tracking


Performance p.a.** in %



Elisabethstraße 65

40217 Düsseldorf










Information

Ratio


Volatility in %


CompositeBench-


Bench-

mark

1 Year 3,40 3,94 -0,55 4,10 3,68 0,59 -0,94

2 Years 4,09 4,53 -0,45 3,64 3,28 0,53 -0,85

3 Years 7,75 8,27 -0,52 3,64 3,40 0,51 -1,00

5 Years 5,28 5,22 0,06 4,06 4,01 0,58 0,11

10 Years 5,43 5,25 0,18 3,40 3,38 0,62 0,29

Apr 01 - Dec 11 5,39 5,29 0,09 3,38 3,42 0,81 0,12

The composite contains all funds that are consistently and discretionary managed against iBoxx Euro Corporate Non-Financial

Index, resp. the Senior subindex according to the Non-Financial Standard investment process.







Elisabethstraße 65

40217 Düsseldorf










Ratio


The composite contained funds with a bundled fee. A recalculation of the included transaction costs couldn't applied, therefore the

funds have been included net of fee in the gross of fee calculation. Therefore, the composite performance is net of transaction costs.

These funds have the following share in the composite market value. 2010:13%


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Important information

This document has been prepared by Meriten Investment Management GmbH, which is regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). This document does not constitute an offer or solicitation in a jurisdiction where to do so is unlawful or where the person making the offer or solicitation is not qualified to do so or where a person receiving the offer or solicitation may not lawfully do so. All opinions and estimates herein reflect those of the respective author at the time of publishing and may change at any time without notice. This presentation is solely intended for information of clients and should not be construed as tax advice. We recommend clients requiring tax advice hereto to consult tax advisers. Although the information in this document is derived from public sources we believe to be reliable, we do not represent, warrant or guarantee that this information is accurate, complete or suitable for any purpose and it should not be used as a basis for investment decisions. All opinions and estimates herein, including forecast returns, involve a number of assumptions that may not prove valid. Further, investments in global markets can be affected by a host of factors, including political and social conditions, diplomatic relations, limitations on removal of funds or assets or imposition of (or change in) exchange control or tax regulations in such markets. All opinions and estimates contained herein reflect our view at the time of publishing and may change any time without notice. Additionally, investments denominated in an alternative currency will

If Meriten Investment Management GmbH receives any rebates on the management fee of target funds or other assets, Meriten Investment Management GmbH undertakes to fully remit such payment to the investor or the fund. If Meriten Investment Management GmbH performs services for an investment product of a third party, Meriten Investment Management GmbH will be compensated by the relevant company. Typical services are investment management or sales activities for funds established by a different investment management company. Normally, such compensation is calculated as a percentage of the management fee (up to 100%) of the respective fund, calculated on the basis of such fund’s assets managed or distributed by Meriten Investment Management GmbH. This may result in the risk that the investment advice given may not be consistent with the investor’s interest. The amount of the management fee is published in the prospectus of the respective fund. Any compensation paid to Meriten Investment Management GmbH does not increase the management fee of the relevant fund. There will be no direct charge to the investor. Further details are available upon request. This communication is not directed to persons in the United Kingdom and may not be used as a basis for their investment decisions. It is further intended solely for persons based in countries in which the respective funds are registered for distribution or in which such registration is not required. The shares of the fund have not been registered under the United States Securities Act of 1933, as amended (the “1933 Act”); they may therefore not be publicly

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time without notice. Additionally, investments denominated in an alternative currency will be subject to changes in exchange rates that may have an adverse effect on the value, price or income of the investment. Meriten Investment Management GmbH or one of its affiliates may: maintain a long or short position in the securities referred to herein or in related futures or options; purchase or sell, make a market in or engage in any other transaction involving such securities and earn brokerage or other compensation in respect of the foregoing. Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. This document is intended solely for the information of those to whom it is distributed, Meriten Investment Management GmbH accepts no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this document. No part of this document may be reproduced or retransmitted in any manner without the prior written permission of Meriten Investment Management GmbH. Additional information is available upon request. Investments in investment funds should only be made on the basis of the current sales prospectus of the respective fund. The prospectus and the financial reports of the funds as well as the key investor information documents are available free of charge from Meriten Investment Management GmbH, Elisabethstraße 65, 40217 Düsseldorf or electronically at www.meriten.com. If the fund makes investments in a currency differing from the shareholder’s currency, the share value may be subject to additional exchange rate fluctuations. The value of investments and the income from them can fall as well as rise and investors may not get back the amount originally invested. This material is for professional clients only and is not intended for distribution to, nor should it be relied on by, retail clients.

States Securities Act of 1933, as amended (the “1933 Act”); they may therefore not be publicly offered or sold in the United States of America or to US citizens or any US residents. This publication is intended as marketing instrument and does not satisfy the statutory requirements regarding the impartiality of a financial analysis, and the financial instruments concerned are not subject to any prohibition of trading in advance of the publication of this presentation. Copyright ©2012 Morningstar, Inc. All Rights Reserved. The information, data, analyses and opinions with reference to Morningstar contained herein (1) include the confidential and proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement.

143/Q2/2013

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