18 th National Pension and Institutional Investor Summit

18 th National Pension and Institutional Investor Summit Tuesday, November 27, 2012 Panel: Global & Emerging Market strategies Speech: Reiner Triltsch, CFA, WHV Investment Management Moderator: Jim Brown, American Electric Power Panelists: Daniel S. Janis, III, Manulife Asset Management Wilbur L. Matthews II, Vaquero Global Investment LP “Enhancing Returns, Managing Risk” Combining Risk, Governance, and Return

NSIIP November 27, 2012 Global and Emerging Markets Opportunities WHV Investment Management Reiner M. Triltsch, CFA Executive Vice President Chief Investment Officer and Portfolio Manager

Overview 1. Contrast Emerging Markets and Developed World • Population • GDP Growth • Government and Consumer Balance Sheets • Market Fundamentals 2. Country/Region Overview • Brazil • Russia • India • China • Africa 3

Emerging Market Equities Overview Emerging Markets vs. Developed Markets Population Gross Domestic Product Market Cap World GDP Source: IMF World Economic Outlook, October 2012 World Population Source: IMF World Economic Outlook, October 2012 World Market Cap Source: MSCI September 30, 2012 4

Gross Domestic Product Growth (% Change) Emerging Markets United States Japan Eurozone United Kingdom Advanced Economies Source: IMF, World Economic Outlook, October 2012 5

GDP of G 7…and the BRICs Source: Financial Times, February 2, 2010 6

2011 Gross Domestic Product per Capita* Income per Capita (USD) 60 000 50 000 40 000 30 000 20 000 10 000 Ko re a R us si a C hi le Br So az ut il h Af ric a C hi na In di a ly So ut h Ita pa n Ja ce an Fr do m ng an y Ki er m ni te d G U U ni te d St a te s 0 Major Emerging Markets Coutries Major Industrialized Countries *PPP Method Source: World Development Indicators Database, World Bank, revised July 9, 2012 7

Industrialization & Urbanization of China and India China Population % China Urbanized India Population % India Urbanized Source: Haywood Securities Inc. , WNA, IMF, United Nations 8

Urbanization is Energy and Resource Intensive Emerging Market Infrastructure (2008 -17) China’s Infrastructure Needs Total expenditure: US$21. 7 trillion • 1, 300 GW of new generating capacity by 2030 - an average 59 GW per year • 17, 000 km of expressways by 2020 –annual average = 1400 km • 300, 000 km of rural roads between 2006 -2010 (50% growth) – annual average = 25, 000 km • $42 bn of investment in railways in 2008 and $200 bn by 2010 - annual average = 17, 000 km • An additional 97 airports to be built by 2020 – annual average = 8 Source: Morgan Stanley, The Economist, Xstrata 9

The Emergence of the Middle Class: Consumption Share of middle class consumption 2009 2030 EU 30% Rest of the World 26% US 7% Japan 4% US 21% Japan 8% Other Asia 9% India China 2% 4% Basis: 2005 PPP$ Source: Morgan Stanley, OECD, Milken Institute 10 Rest of the World 20% China 18% EU 14% Other Asia 14% India 23%

Overburdened Developed Countries Public Debt (% of GDP) Source: Economist Intelligence Unit, December 31, 2011. 11

Overburdened Developed Countries Consumer Debt Source: International Monetary Fund, Milken Institute 12

Foreign Reserves In $ Billions Source: The Economist Newspaper and The Economist Group, June 30, 2012 13

Profitability and Valuation Return on Equity & Price-to-Book Region Return on Equity Price-to-Book ROE/Price-to-Book ■ Emerging Markets 14. 3 1. 8 7. 94 ■ United States 13. 8 2. 2 6. 27 ■ Japan 5. 3 1. 0 5. 30 ■ Eurozone 6. 7 1. 3 5. 15 ■ United Kingdom 12. 1 1. 7 7. 12 Source: Starmine, October 8, 2012 14

Valuation and EM Returns Emerging Markets Forward USD Returns 1 1992 Through 2010 % 40, 00 35, 00 30, 00 25, 00 20, 00 15, 00 10, 00 5, 00 0, 00 Following 3 -Months Following 6 -Months All Other Periods Following 12 -Months 8 -10 x Forward P/E Multiple Source: Empirical Research Partners Analysis. 1 Returns are equally-weighted 15

Brazil Progress in Brazil Source: Itau BBA, October 26, 2011 16

Brazil Greater Income Equality Source: Itau BBA, October 26, 2011 17

MSCI Russia vs. Brent Crude Oil 18

India’s Favorable Demographics Source: The Economist Online, December 11, 2008 19

China: #2 Economy GDP as % of US GDP, at market exchange rates 80, 00 70, 00 59, 06 60, 00 60, 06 47, 84 50, 00 38, 92 40, 00 38, 42 40, 46 32, 84 30, 00 China 32, 57 20, 88 20, 00 11, 38 10, 00 9, 40 0, 00 1980 6, 82 1985 12, 81 7, 08 1990 1995 2000 Source: Economist Intelligence Unit, The Economist Online, December 30, 2011 20 Japan 2005 2010

Africa-The Next Frontier Population (2012)*: million Annual GDP Growth (2005 -2012 average)*: 1038 4. 97% Official Development Assistance (2007): billion $39 Net Foreign Direct Investment (2007): billion $47 Source: African Development Bank, OECD, African Economic Outlook, 2008; OECD; UNCTAD; IMF World Economic Outlook; Milken Institute *Note: For Population and Annual GDP Growth, average IMF estimates are used after 2009 21

Africa-The Next Frontier Land Area Africa 22% World 88% Population GDP Africa 2% Africa 15% World 85% World 98% Source: Population Reference Bureau, U. S. Census Bureau, International Monetary Fund, Milken Institute 22

Conclusion Fundamentals should favor above average returns in emerging market equities • Faster growing population that accounts for 85% of world’s total • Economies growing at twice the rate of the “developed” world • EM countries’ and individuals’ balance sheets are very healthy compared to the “developed” world • Profitability and valuations of emerging markets are attractive 23

18 th National Pension and Institutional Investor Summit Tuesday, November 27, 2012 Panel: Global & Emerging Market strategies Speech: Reiner Triltsch, CFA, WHV Investment Management Moderator: Jim Brown, American Electric Power Panelists: Daniel S. Janis, III, Manulife Asset Management Wilbur L. Matthews II, Vaquero Global Investment LP “Enhancing Returns, Managing Risk” Combining Risk, Governance, and Return

Global Search For Yield Presented by: Daniel S Janis III

The Global Search for Yield Low Yield Environment is Concerning § A demographic wave of aging and risk-averse investors grows ever hungrier for income – Yet the mainstream bond markets offer the most miserly of yields Barclays Capital Developed Market Global Treasury Indices Yield to Worst 8, 00% 7, 00% 6, 00% 5, 00% 4, 00% 3, 00% 2, 00% 1, 00% 0, 00% май-07 сен-07 янв-08 май-08 сен-08 янв-09 май-09 сен-09 янв-10 май-10 сен-10 янв-11 май-11 сен-11 янв-12 май-12 26 As of September 30, 2012 Source: Barclays Capital US Canada France Germany Japan UK Australia New Zealand Norway Singapore

Global Fixed Income Investing “The World is Our Oyster” By expanding the opportunity set, there is increased potential to add value while reducing risk The Opportunity Set Global Fixed Income Yields § A global fixed income manager will assess the best investment prospects around the globe, across the credit-risk spectrum and up and down the capital structure Key Benefits of Global Fixed Income Investing § Increased yield and total return opportunities § Increased diversification benefits versus other fixed income strategies and broader asset classes § Currency diversification § Potential shield against rising interest rates § Expanded opportunity set enables managers the flexibility to avoid the riskier parts of the fixed income markets 27 Yield to Maturity US High Yield 7. 19% EMD – High Yield (US$) 6. 89% EM Local Currency Govt 5. 20% EMD – Inv Grade (US$) 3. 55% US Inv Grade Corporate 2. 80% Global Inv Grade Corporate 2. 77% US CMBS 1. 97% US MBS 1. 77% US Aggregate Bond 1. 61% Global Treasury 1. 35% US ABS 0. 90% US Treasury 0. 82% As of September 30, 2012 Source: Barclays Capital

Global Outlook View as of September 30, 2012 Scandinavia UK/ Ireland Canada Euro Zone US Japan Asia Mexico Brazil Australia Argentina Favorable Currencies Favorable Rates Favorable Credit Spreads 28 New Zealand

Global Outlook Fixed Income Opportunities With the income component of fixed income investing reduced by tighter spreads – approaching long-term averages – there will be a renewed focus on total return opportunities described below: § EM Asia – We are witnessing upgrades (Indonesia, Korea. . . and Philippines is on watch for an upgrade) which will act as a tailwind for the coming years § EM Credit – EM credit markets, particularly in Asia, are developing rapidly and will create opportunities for yield, local currency exposure and diversification § Europe – 29 The programs being implemented to stabilize the region will create investment opportunities – but investors must seek opportunities where the risk/reward ratio is favorable § Currency – We believe there ample opportunities for significant moves in Asian and commodity bloc currencies over the coming years § Securitized Markets – Non-agency and commercial mortgage-backed securities, that in small sizes, could have a meaningful impact on total returns § Leverage Loans – Offer the opportunity to move up the capital structure and provide some protection vs rising rates, both while maintaining an attractive yield profile

Potential Risk Factors to Global Markets § European sovereign debt and banking crisis § US election & US fiscal cliff § Slowing growth in China § Geopolitical tensions in the Middle East 30

Disclaimer Manulife Asset Management (US) LLC is a wholly owned subsidiary of Manulife Financial Corporation (Manulife Financial) and is affiliated with several US based and non-US based investment advisers which are also subsidiaries or affiliates of Manulife Financial. Collectively, Manulife Asset Management (US)and its advisory affiliates represent the diversified investment management division of Manulife Financial and they provide comprehensive asset management solutions for institutional investors, retirement and investment funds, and individuals, in key markets around the world. Certain of these companies within Manulife Financial may provide services to Manulife Asset Management (US) has prepared this material and it is intended for qualified investors only. This material has been prepared at the request of the recipient and Manulife Asset Management (US) is not soliciting any action based upon it. This information is confidential and the recipient agrees to use this information solely for the lawful and appropriate purpose(s) intended by the parties. The material contains information regarding the investment approach described herein and is not a complete description of the investment objectives, risks, policies, guidelines or portfolio management and research that supports this investment approach. Any decision to engage Manulife Asset Management (US) should be based upon a review of the terms of the investment management agreement and the specific investment objectives, policies and guidelines that apply under the terms of such agreement. Any decision to invest should be made solely in reliance upon such agreement The information contained herein has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. The citation of specific trades or strategies is intended only to illustrate some of the investment methodologies and philosophies of Manulife Asset Management (US). Such strategies may involve a high degree of risk. The historical success, or Manulife Asset Management (US)’s belief in the future success, of any of the strategies is not indicative of, and has no bearing on, future results. Risk controls and other proprietary technology do not promise any level of performance or guarantee against loss of principal. Past performance is not indicative of future results. 31

18 th National Pension and Institutional Investor Summit Tuesday, November 27, 2012 Panel: Global & Emerging Market strategies Speech: Reiner Triltsch, CFA, WHV Investment Management Moderator: Jim Brown, American Electric Power Panelists: Daniel S. Janis, III, Manulife Asset Management Wilbur L. Matthews II, Vaquero Global Investment LP “Enhancing Returns, Managing Risk” Combining Risk, Governance, and Return

an affiliate of: Atlantic Asset Management National Pension and Institutional Investor Summit November 26 - 27, 2012 Wilbur Matthews Principal Vaquero Global Investment LP wilbur@vaquerollc. com 210. 826. 7777 Fernanda Vinueza Marketing Vaquero Global Investment LP fernanda@vaquerollc. com 210. 826. 7781

The Future is Emerging Markets Evolution of Nominal GDP (1995, 2010 and 2025) u In the 15 years from 1995 to 2010 emerging markets grew from 18% to 34. 7% of global GDP u In that period EM nominal GDP grew by 313% while the developed world grew by 75% u Estimates suggest that EM nominal GDP will exceed that of the developed world by 2027 u 73% of the World’s land 84% of the World’s labor are in Emerging Markets, we expect GDP trends to converge towards these higher levels. Source: World Bank, IMF, EIU, Bloomberg, JP Morgan, Merrill Lynch , Credit Suisse, Citi Bank and projections derived by Vaquero. 34

Corporate Bonds – The Fastest Growing Segment of the Emerging Market Asset Class Source: Bloomberg, Bondradar, and projections derived by Vaquero. 35

EM Fixed Income Offers Better and Higher Quality Returns than Equities u When investors think of emerging markets they often think of one thing, VOLATILITY u However, this reputation is somewhat undeserved u While FX and Equity markets are notoriously volatile, bond markets are much less so Source: Bloomberg, JP Morgan. 36

Market Capitalization of Credit Risk Assets u The indexable EM Credit Universe is almost as large as the US High Yield market u The growth rate of EM Credit is much higher and will likely overtake the US High Yield market in 2015 Source: BAML, JP Morgan, Barclays and projections derived by Vaquero. 37

EM Credit Offers Stronger Balance Sheets u When compared to emerging market peers, developed world corporates do not have the “armor plated” balance sheets that has been portrayed u EM Corporates, both Investment Grade and High Yield, are significantly less levered than similarly rated developed world peers Source: BAML 38

EM Credit: Compelling Cheapness u Excess Spread in our general market Data as of 9/30/12 39

EM Credit: Compelling Cheapness u Excess Spread Captures ► Cross Border Risk ► Political Risk ► Foreign Exchange Risk ► Convertibility Risk ► Individual Credit Risk ► Balance Sheet Risk ► Management Risk ► Liquidity Risk u Many of these risks are already captured in sovereign and credit spreads u The excess spread in EM represents a HUGE cushion and a significant margin for error Trade Example #1 Bumi Resources BUMIIJ 10. 75% /17 10/13/11 Trade Example #2 Axtel AXTEL 9. 00% /19 8/08/12 Trade Example #3 Codere CODERE 9. 25% /19 8/29/12 40

18 th National Pension and Institutional Investor Summit Tuesday, November 27, 2012 Panel: Global & Emerging Market strategies Speech: Reiner Triltsch, CFA, WHV Investment Management Moderator: Jim Brown, American Electric Power Panelists: Daniel S. Janis, III, Manulife Asset Management Wilbur L. Matthews II, Vaquero Global Investment LP “Enhancing Returns, Managing Risk” Combining Risk, Governance, and Return