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AIA US HIGH YIELD BOND FUNDCOMMENTARYCommentary Sources1. AIA Investment Management Pte Ltd2. AIA Investment Funds2. PIMCO Asia Pte LtdEven within an already challenging year for markets, performance across assetclasses was particularly poor in June. Concerns that the Fed could accelerate thetightening of financial conditions were fueled by a higher than anticipated consumerprice index (CPI) print in the US. Persistent inflation, and increasing recessionconcerns were main contributors to the sell-off in markets. Within equities, theS&P500 lost 8.3%, while the MSCI World lost 9.3% in June. US 10-year yields roseto 3.47% in the run up to the Federal Open Market Committee (FOMC) meeting,before ending the month at 3.01% up by 17 basis points (bps) versus May. 10-yearUK and German yields rose 13bps and 21bps to 2.23% and 1.33%, respectively.Yields at the front end of the curve moved up across developed markets, with US,UK, and German 2-year increasing 40bps, 26bps, and 14bps to 2.95%, 1.83%, and0.63%, respectively. Within spreads, USD investment grade corporate spreadswidened 24bps to 164bps while EUR investment grade corporate spreads widened52bps to 212bps, up 114bps since the beginning of the year. In high yield credit, USDand EUR spreads widened by 165bps and 164bps, respectively. Finally, oil postedits first monthly decline in 2022, finishing the month 3.15% lower at 109 per barrel(Crude Oil, Brent).In the monetary space, the Fed hiked rates by 75bps following the stronger thanexpected CPI print in June. In conjunction with the hike, the Fed started to reduce itsbalance sheet. In total 48.25bn of treasury securities matured in June, with only theshare in excess of the initial 30bn monthly cap being reinvested. In the MBSmarkets, only prepayments were reinvested this month. The European Central Bank(ECB) continued its hawkish stance amidst elevated inflation prints, announcing anend of net asset purchases for July 1st and preparing the market for a hiking cyclestarting in July. The Bank of England (BOE) raised rates by 25bps in June to combatpersistent price pressures in the UK, as inflation rose to 40-year high in May drivenby energy prices and prices of goods.Looking at macro prints, US CPI increased 1.0% in May, rising 8.6% over the past 12months ending May 2022. In the Euro Area, headline inflation remained elevated at8.1% yoy (Harmonised Index of Consumer Prices) in May – mainly due to increasesin housing, energy, and transportation.Global investment grade (IG) credit spreads widened by 29 bps in June to 156 bps,and the sector returned -2.58% for the month, underperforming like-duration globalgovernment bonds by -1.52%. Global IG spreads widened as rising rates, inflationconcerns, and weaker consumer sentiment weighed on risk sentiment. Global highyield bonds returned -6.99% in June and underperformed like-duration Treasuries by-6.27%. Spreads widened from 502 bps to 666 bps after weak economic data addedto concern about a recession amid aggressive Federal Reserve policy.The AIA US High Yield Fund lost 7.03% for the month, underperforming its referenceindex (ICE BofA US High Yield Constrained Index) by 0.22%.Key contributors to fund performance include security selection within the Packagingand Retailers sector. Key detractors include security selection within the Healthcaresector, and overweight to the Building Materials sector.The Fund continues to favour US exposure, where the managers see better growthprospects. Additionally, the US high yield market is a larger and relatively more liquidmarket which is important in volatile environments, and has a broader and morediverse buyer base. The Fund continues to emphasize on sectors that are asset-richand defensive in nature. The Fund continues to favour Healthcare, which have highquality underlying assets and high barriers to entry while underweighting Wirelines,as fundamentals remain challenging for legacy technologies and long-term ROI isquestionable.Page 4 / 5

AIA US HIGH YIELD BOND FUNDDISCLAIMER*This document is exclusively for use by Institutional Investors as defined under Luxembourg laws and regulations and the Securitiesand Futures Act (Chapter 289 of Singapore) and is not to be used with or distributed directly or indirectly to the public and must not bereproduced, extracted or circulated without prior permission.AIA Investment Funds (“AIAIF”) is an open-ended investment company with variable capital registered in the Grand Duchy ofLuxembourg, which qualifies as an Undertaking for Collective in Transferable Securities under relevant EU legislation. Themanagement company of AIAIF is FundRock Management Company S.A. AIAIF may not be registered in every jurisdiction and thisdocument and any related materials may not be distributed or published in any jurisdiction where it would be contrary to local law orregulation.This document is for information only and is not intended as an offer, a solicitation of offer or a recommendation, to deal in shares ofsecurities or any financial instruments nor does it constitute any investment advice to anyone as it does not have regard to any specificinvestment objective, financial situation or particular needs. Subscriptions for shares of AIAIF can only be made on the basis of itscurrent Prospectus and the Key Investor Information Document (“KIID”) of the relevant sub-fund.Investments in AIAIF are not obligations of, deposits in, guaranteed or insured by AIAIF nor any of its affiliates and are subject toinvestment risks, including the possible loss of the principal amount invested. Prospective investors are invited to further considerthe risk warnings section of the Prospectus and the relevant KIID. This document is solely for information and does not have anyregard to the specific investment objectives, financial or tax situation and the particular needs of any specific person who may receivethis document. No investment strategy or risk management strategy techniques can guarantee returns or eliminate risks in any marketenvironment.Please refer to the offering documents (including, but not limited to the current Prospectus and the KIID) of AIAIF for details on feesand charges, dealing & redemption, product features, risk factors and seek professional advice before making any investmentdecision. The value of shares in any sub-fund of AIAIF and the income accruing to the shares, if any, may fall or rise. Where aninvestment is denominated in a currency other than the base currency of a sub-fund of AIAIF, exchange rates may have an adverseeffect on the value price or income of that investment. Investors should not make any investment decision solely based on thisdocument. In the event that an investor may choose not to seek advice from a financial adviser, the latter should consider carefullywhether an investment into a sub-fund of AIAIF in question is suitable for him.Past performance and the predictions, projections, or forecasts on the economy, securities markets or the economic trendsof the markets are not necessarily indicative of the future or likely performance of the AIAIF.Any sub-fund of AIAIF may use derivative instruments for efficient portfolio management and hedging purposes.This paragraph is only applicable to the distribution share classes of AIAIF. AIAIF may, at its discretion, determine how theearnings of distribution share classes shall be distributed and may declare distributions from time to time. When AIAIF decides to paydividends in respect of a distributing share class out of the capital of the sub-fund of AIAIF or where the dividends in respect of adistributing share class are paid out of gross income of the sub-fund of AIAIF, while the sub-fund of AIAIF's fees and expenses arecharged to or paid out of the capital of the sub-fund of AIAIF, resulting in an increase in distributable income for the payment ofdividends by the sub-fund of AIAIF, such payment of dividends may, in the light of the rules applicable in the jurisdictions where thesub-fund of AIAIF is registered for public distribution, be considered as a payment of dividends out of and effectively out of capitalrespectively, both of which would amount to a return or withdrawal of part of an investor's original investment or from any capital gainsattributable to that original investment. The distributions, including amounts and frequency, are not guaranteed and are subject to thediscretion of AIAIF. Past dividends are not a forecast or projection of future distributions.There is no assurance that any securities discussed herein will remain in the portfolio in the future. All material is compiled fromsources believed to be reliable and correct but accuracy cannot be guaranteed. No warranty of accuracy is given and no liability inrespect or any error or omission is accepted nor liability for damages arising out of any person’s reliance upon the information, opinion,forecast or estimate contained in this document.The above is based on information available as of the date of this document, unless otherwise stated. Any information, opinion or viewpresented is subject to change and AIAIF reserves the right to make any amendments to the information at any time, without notice.Page 5 / 5

AIA US HIGH YIELD BOND FUND Commentary Sources 1. AIA Investment Management Pte Ltd 2. AIA Investment Funds 2. PIMCO Asia Pte Ltd COMMENTARY Even within an already challenging year for markets, performance across asset . such payment of dividends may, in the light of the rules applicable in the jurisdictions where the .