E, iti e : Global equity markets - Key points Preferences (6 months) ¢ We keep an overall neutral allocation to equities (see summary on slide 3). underweight neutral overweight ¢ We keep our preference for US equities. Resilient company earnings still soeak for an overweight Se I stance. Continued economic growth should underpin earnings also in 2013. 8 Usa ¢ We keep our neutral stance on Eurozone equities. Value is attractive compared to global equities. Be However, due to the recession in several countries the earnings dynamics remains weak. In addition, Sa “Caneda uncertainty as to when and under what conditions Spain will sign a memorandum of understanding keeps EMU us from taking a more positive stance. @ UK ¢ We have an overweight position in EM equities. Monetary easing as well as fiscal stimulus in key § caiieetland countries, coupled with relatively attractive valuations, are supporting factors. Economic activity is likely to | improve gradually over the coming quarters, supporting company earnings. Sweden ¢ We keep our negative stance on Canadian equities. Corporate earnings continue to decline, showing Australia rl a weak development relative to the global trend. In addition, valuation is not compelling. gy, Here. Kens ° We are cautious on Australian equities. Realized earnings continue to come down for the market. a Japan | ¢ We are neutral on Swiss equities. Companies show solid earnings growth, which is expected to hold up j better than in other regions. Although the Swiss franc is still overvalued, the weakening to the USD and EE | related currencies since this summer provides additional earnings support. % Global EM = ¢ We keep our neutral view on UK equities. In the UK the earnings dynamics lags behind other markets. — old Also, the recent strengthening in the pound is a drag for earnings measured in local currency terms. Note: Preference in hedged terms (excl. currencies) Global equity sectors — Key points underweight neutral overweight ¢ We keep