Exhibit 74: Japanese Net Purchases of Foreign better growth prospects, which will also place Long-Term Debt by Investor Type downward pressure on the Japanese currency; such Additional buying of foreign assets by Japanese investors announcements are already on the rise."° could put further downward pressure on the yen. This is not to suggest that the prospects for the 12-Month Rolling Sum, % of GDP yen are completely one-sided. The higher global 2 rates we expect may make it difficult for the BOJ | f como to maintain such low domestic yields, which would Lets! lI Wilh, Care. alleviate some of the downward pressure on the a pe Hu HT MALTIII currency. Moreover, the many sources of global iil aaa | Mi uncertainty in the year ahead could lead investors ; | | back into the yen as a liquid hedge, as we saw in | | the first half of 2016. Finally, after four years of a trusts | Septet pan weakness, the yen has reached undervalued levels. 4 Insurers ll Given this more balanced risk profile, we mAI Other currently have no tactical position in the yen. ° 2013 7014 2015 7016 British Pound . natathrough November 30,2016 While broader financial markets were unperturbed Note: 032016 data used to calculate 042016 share of SDP. by the UK’s decision to leave the European Union, Source: Investment Strategy Group, Haver Analytics. _ the same cannot be said for currencies. Here, All Other defined as central banks, general government, financial instruments firms, investment trust management companies and others. the Brexit vote sent the pound tumbling to its lowest level versus the US dollar since the 1985 Plaza Accord."! Although the pound has since Yen recovered some of those losses, its 16.3% decline For yen investors, last year was a reminder that relative to the US dollar last year still ranks as the markets often take an escalator up but an elevator — worst performance among all developed market down. After steadily appreciating almost 20% currencies. against the US dollar over the