Responsible investing – A banking perspective

Responsible investing – A banking perspective March 28, 2013 Mark Watts, CFA Head of Fixed Income

Disclaimer This document outlines particular services provided by National Bank of Abu Dhabi (“NBAD”) and does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe for, any shares in NBAD nor shall it or any part of it form the basis of or be relied on in connection with any contract therefore. This presentation was prepared by NBAD exclusively for the benefit and internal use of the recipient. This presentation is incomplete without reference to, and should be viewed solely in conjunction with the associated oral briefing provided by NBAD. The presentation is proprietary to NBAD and may not be disclosed to any third party or used for any other purpose without the prior written consent of NBAD. The information in this presentation reflects prevailing conditions and our views as of this date, which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all the information available from public sources or which was otherwise reviewed by us. In addition, our analyses are not and do not purport to be appraisals of the assets, stock or business of the recipient. Even when this presentation contains a kind of appraisal, it should be considered preliminary, suitable only for the purpose described herein and not be disclosed or otherwise used without the prior written consent of NBAD. NBAD Mena Dividend Leader (the “Fund”) is a sub-fund of OneShare Plc (the “Company”), an open-ended umbrella type investment company with segregated liability between sub-funds and authorized by the Central Bank of Ireland as a UCITS pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations,2011, as may be amended from time to time. Past performance is not indicative of future performance. The value of investments can go down as well as up and the Investor may not get back all of the initial investment. There is no guarantee for the performance during the investment period. It is recommended that every Investor seeks independent financial advice about the risks involved before considering investing. The sale of the Fund is subject to the conditions stipulated in the Prospectus and Key Investor Information Document of the Fund, which can be obtained from the offices of Northern Trust International Fund Administration Services (Ireland) Limited , Georges Court, 54-62 Townsend Street, Dublin 2, Ireland [or are available from www.nbad.com]. NBAD is licensed by the Central Bank of the UAE.

Responsible investing – A banking perspectivePerception is reality? Question: If you had to vote for who you think has the worst reputation today from a job/industry perspective, who would you vote for? A. Real estate broker/agent B. Lawyer/Solicitor C. Traffic warden D. Banker

Responsible investing – A banking perspectiveMain areas to cover Ethics and good governance Activities in the community Approach to investors Wider industry issues

Ethics and good governance

Responsible investing – A banking perspective Ethics and NBAD Code of Ethics Principles of professionalism Bank internal & external image Gifts Commitment to the Bank and its customers Reporting Client confidentiality Trading in Bank’s shares Bribes Commitment to Society Conflicts of interest Bank confidentiality Outside interests Relatives within the Bank Know Your Customer & Anti Money laundering

Responsible investing – A banking perspective Banks have to follow stringent guidelines Regulatory bodies: Central Bank of UAE & Government of UAE Securities & Commodities Authority (SCA) Abu Dhabi Stock Exchange (ADX) Dubai Financial Market (DFM) Dubai Financial Service Authority (DFSA) Guernsey Financial Services Commission (GFSC) Central Bank of Ireland Cayman Islands Money Authority Laws/regulations: United Kingdom Bribery Act UCITS IV United Nation Sanctions United States Sanctions The Foreign Account Tax Compliance Act (FATCA) - is a US law aimed at foreign financial institutions and other financial intermediaries to prevent tax evasion by US citizens and residents through use of offshore accounts.

Responsible investing – A banking perspective Prevention of money laundering is a key subject Procedures are in place for the following across NBAD to ensure compliance with the Bank’s Anti Money Laundering policy: Know your customer (KYC) – stage where we request relevant documents Customer due diligence – further checking by conducting investigation/audit to customer Anti money laundering (AML) - Compliance with obligations to identify and report unusual and suspicious activities/transactions Regulatory compliance – adherence to regulations issued by the Central Bank of UAE, the Government of UAE, and other bodies

Activities in the community

Responsible investing – A banking perspective It’s not all about P&L! Charitable organizations which NBAD has supported through the ADNIF-ZakatFund:

Responsible investing – A banking perspective A vital player in helping advance community aspirations NBAD supports the product programs for SMEs offered by Khalifa Fund through: Administering Khalifa Fund Loans under the terms of the MOU agreement. facilitating companies with annual turnover of up to AED100million. Providing expertise and technical support in different fields to support and develop small and medium sized development projects by providing training and awareness sessions. Education in conjunction with the Western Region development Council to educate the SMEs on how to read balance sheets, develop a business plan and analyze statements.

Responsible investing – A banking perspective Also a major player in advancing national projects… NBAD has been involved in the financing of the following projects: Khalifa Port Project & Khalifa Industrial Zone Abu Dhabi (KIZAD) Etihad Rail (phase 1 of the project) Various Independent Water and Power Projects (IWPPs) A host of additional private initiatives helping countless individuals and companies across the country and across the region…

Responsible investing – A banking perspective Our stakeholders and priority focus areas

Approach to investors

Responsible investing – A banking perspective Our approach to Treating Customers Fairly

Responsible investing – A banking perspective Treating Customers Fairly (TCF) – a charter Our customers can be confident that treating them fairly at all times is central to our corporate culture and values We will provide our customers with clear information on our products and services. Where customers receive advice, we aim to ensure that such advise is suitable and taken into account of their circumstances We value customer feedback and will respond promptly to any complaint. We will apply our TCF general principles to situations where we distribute products on behalf of third parties and, for any related service that is outsourced TCF compliance will be linked to performance management and reward across the NBAD Group

Responsible investing – A banking perspective Customer risk profile and allocation portfolios

Responsible investing – A banking perspective Product risk rating overview Customer: What a customer can buy: No Sales Product Risk Rating Customer Investment Profile 1 Secure (1) Exceptional Transaction Exceptional Transaction 2 1 Conservative (2) Exceptional Transaction Exceptional Transaction 1 3 2 Balanced(3) Exceptional Transaction 1 2 4 3 Growth (4) 1 2 4 5 3 Enhanced growth(5) 1 2 4 5 3 6 Aggressive growth (6) Vulnerable (VL) 1

Responsible investing – A banking perspective Diversifying – building sound portfolios

Responsible investing – A banking perspective Risk returns Source: NBAD/Bloomberg, weekly data 31st December 2010 to 28th February 2013, all performances are calculated net of fees, return is annualized NBAD Institutional Clients Portfolio: Unconstrained NBAD Portfolio for institutional investors since inception, EFH Hermes FI Fund: EFG Hermes Fixed Income MENA fund , Emirates NBD MENA FI Fund: Emirates MENA Fixed Income AA, Gulf Bond FI fund: Gulf Bond MENA Fixed Income Fund, Barclays EMGCC Bond Index: Barclays Emerging Market GCC Credit, Sharpe Ratio Risk Free Rate is calculated as the 3 Month EIBOR (1.31%)

Responsible investing – A banking perspective Diversification initiatives - meeting client needs A bank should offer its customers tools to help them diversify risk. On the 31st October 2000, we launched the NBAD UAE Growth Fund.This allowed retail as well as large investors to reduce their investment risk. In the year 2005, NBAD launched the Shari’a compliant NBAD UAE Islamic Fund thus expanding its professional services to a wider and more observant subset of its stakeholders. NBAD introduced new asset classes in 2012 with the launch of our flagship NBAD Cautious Income Fund, and the NBAD Sukuk Income Fund in addition to several capital guaranteed products. 2102 also saw the launch of 3 balanced funds, allowing investors access to global asset allocation and global fund management expertise

Wider industry issues

Responsible investing – A banking perspectiveSome responsible investing jargon explained

Responsible investing – A banking perspectiveWhat the market is concerned about

Responsible investing – A banking perspectiveSome global challenges I The World Bank estimates that higher food prices have increased the number of undernourished people by as much as 100 million since 2007. There will be competition for land between those who wish to plant food crops for consumption and those who wish to use those crops to produce biofuels. This competition is expected to require a 10% increase in farmland worldwide by 2030. By 2025 the United Nations predicts that 20% of the world’s population will not have access to adequate drinking water. Half the world’s population doesn’t have access to basic sanitation. Some successes: wind power is growing at 30% pa globally and is likely to provide up to 15% of the US electricity needs by 2020. According to the UN global projections of $630 billion investments in renewable energy by 2030 would translate into at least 20 million additional jobs.

Responsible investing – A banking perspectiveSome global challenges II The global population is growing at an exponential rate. From the beginning of mankind 160 thousand years ago until 1945 AD, the earth’s population grew to a total of two billion people. But in just 65 years since 1945, our population has tripled to six billion and will grow to over nine billion by 2050. Most growth will occur in developing nations, creating unprecedented pressure on natural resources such as energy, food, water, timber and land. Increasing demand for food, infrastructure and health services will have to be met. Waste and pollution will have to be managed. But we’re also facing an aging population. Around one fifth of the population in the developed world is now over 60. By 2050 one third of all people will be over 60.

Responsible investing – A banking perspectiveSome responsible investing jargon explained Negative screening - excludes certain securities from investment consideration based on social and/or environmental criteria. Divestment - is the act of removing stocks from a portfolio based on mainly ethical, non-financial objections to certain business activities of a corporation. Shareholder activism - efforts attempt to positively influence corporate behaviour. Shareholder engagement - less vocal than shareholder activism, requires extensive monitoring of the non-financial performance of all portfolio companies. Positive investing - making investments in activities and companies believed to have a positive social impact. Community investment - by investing directly in an institution, rather than purchasing stock, an investor is able to create a greater social impact: Impact investing - an investor will actively seek to place capital in businesses and funds that combine financial and social returns.

Responsible investing – A banking perspectiveHave I changed your perception? Question: If you had to vote for who you think has the worst reputation today from a job/industry perspective, who would you vote for? A. Real estate broker/agent B. Lawyer/Solicitor C. Traffic warden D. Banker

Thank You

Responsible investing – A banking perspective