Fig 2. Importance of macroeconomic conditions to strategic and tactical asset allocation Importance to SAA @ Importance to TAA 8.1 Low interest rates ol iA US election 65 teal Commodity prices 6.6 6.9 Brexit, EU break 15 eS Stock market volatility 7.5 Bai Terrorism Bue Be War in Syria 55 55 Emerging market 6.9 5.0 Chinese volatility (opll Sample is based on sovereign investors and excludes central banks. SAA=Strategic Asset Allocation. TAA= Tactical Asset Allocation. Sample=20. Fig 3. Past year returns and target returns (% AUM) Mi Past year returns M@§ Target returns NS en: — ae Investment sovereigns A®) Liability sovereigns 6.0 _ e.: —— es — Sample is based on sovereign investors and excludes central banks. Sample size shown in grey. Data is not weighted by AUM. 07 HOUSE_OVERSIGHT_026687