ST. JAMES’S PLACE WEALTH MANAGEMENT

WHAT IT MEANS TO BE A CLIENT

2

Contents

About us 3

The strength of the Partnership 8

Our investment management approach 11

Benefits of our approach 16

What our clients think 18

How do we compare? 24

Appendices 32

3

• Part of the award-winning St. James’s Place Wealth Management

• Face-to-face wealth management advice designed to suit your individual long-term requirements

• Access to a wide range of products and services that can be tailored specifically to your needs, making it easier and simpler for you to manage your wealth

• Everything from pension and Inheritance Tax planning, through to investment management that offers direct access to many of the top fund management teams across the globe

About my Practice

4

• A leading UK wealth management organisation

• Founded in 1991

• A FTSE 100 company with a market capitalisation of c.£3.7bn

• £49.1 billion client funds under management

• Over 2,000 Partner Practices of the St. James’s Place Partnership

• Supported by over 1,000 employees

About St. James’s Place

All information as at 30 September 2014.

5

• We are committed to helping clients manage their wealth in a way that reflects their personal circumstances now and in the future

• We put our clients firmly at the centre of everything we do

• We provide face-to-face wealth management advice clients can trust

• We are a financially strong group; solvent, profitable and with the resources, capital, people and expertise to support clients

• We underwrite our advice with a guarantee*

Our Covenant

*St. James’s Place guarantees the suitability of the advice given by members of the St. James’s Place Partnership when recommending any of the wealth management products and services available from companies in the group.

6

The St. James’s Place Advice Guarantee

St. James’s Place guarantees the suitability of the advice given by members of the St. James’s Place Partnership

when recommending any of the wealth management products and services

available from companies in the group.

7

• Long-term face-to-face provision of high quality advice from a highly qualified financial adviser you can trust

• The security of knowing the advice is backed by a guarantee* provided by a FTSE 100 company

• A business model that includes succession planning, ensuring our clients have support and service over the years to come from their adviser and from us

• Annual and online Wealth Account

• High quality specialist pensions, tax and trust advice

• Ongoing management of investments by leading global investment professionals

• Regular investment updates

• Monitoring by the St. James’s Place Investment Committee

• Fund manager monitoring and assessment by Stamford Associates and other specialist fund consultants including AON Consulting, ARC and Inalytics

What we provide

Products and services offered by St. James’s Place include those that may put your capital at risk.*St. James’s Place guarantees the suitability of the advice given by members of the St. James’s Place Partnership when recommending any of the

wealth management products and services available from companies in the group.

8

The strength of the Partnership

9

• They are called Partners because of the way they work in partnership with you

• Over 2,000 Partner Practices play the leading role in delivering our wealth management service

• Some of the most experienced and able professionals working in wealth management today – average industry experience of c.18 years

• Proven track record

• Professionally qualified (Diploma and above)

• Exclusive access to St. James’s Place investment approach and services

• Supported by specialist technical and compliance professionals

• Focussed on maintaining long-term relationships

The St. James’s Place Partnership

Partners

4%

5%

2%

17%

23%

13%4% 4%

23%9%

There are some important questions we think all clients need to carefully consider when it comes to investing:

• How will you choose an investment manager?• How safe are your investments? (And how will you know?)• How will your investments be monitored, and by whom?• Which individual is managing your money?• Who is monitoring them?• What would you do if they changed jobs and how would you know?• When is a good time to invest?• When should you say ‘no’?• Governance – who is on your Investment Committee?

What is your investment management approach?

10

11

Our investment management approach

12

Our approach to investment management

Appoints the Fund Managers

Sets performance objectives

Risk management and strategy

Decisions: Change firm?

Change manager?No change?

‘MANAGES THE MANAGERS’

Peter Dunscombe

Davina Curling

Win Robbins

Steven Daniels

‘INDEPENDENT EXPERTISE’ THE INVESTMENT COMMITTEE STAMFORD

ASSOCIATES

13

Independent guidance and expertise

Peter Dunscombe

Previously Chief Investment Officer of the BBC Pension Fund advising on investment

strategies and portfolio development. Non-executive member of the investment

committees of The Pensions Trust and Reed Elsevier

Pension Fund.

Davina Curling

Non-executive director of Invesco Income Growth Trust

and board member of BlackRock Greater European

Trust. Former Managing Director at Russell

Investments.

Win Robbins

Trustee Director of Now Pensions Trust. Trustee

for Landesbanken Baden– Wuerttenberg Pension Fund. Director of City

Merchants High Yield Trust.

Steven Daniels

Chief Investment Officer of Tesco Staff Pension Scheme and Investment Committee member of the Alzheimer’s

Society. Former Group Chief Investment Officer

at Liverpool Victoria Friendly Society.

14

Stamford AssociatesIndependent Investment Consultancy

Research FundManager Market

Access toWhole Market

Monitor Managersand Portfolios

Qualitative andQuantitative

Advise InvestmentCommittee

Focus on FutureOutperformance

• Analyse & identify talented managers

• Gather intelligence

• Data analysis

• Behavioural psychology• Monitor activity

• Workplace analysis

Recommend:

• New managers• Potential changes

15

Global Investment Management Expertise

S. W. M i tc h e l l C a p i ta l l l p

33 funds

59 lead fund managers

30 fund houses

8 asset classes/

strategies

14 exclusive to UK retail investors

14 cities

16

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

• No in-house managers, so no conflict of interest

• Benefit from Investment Committee experience & expertise

• Global research capability

• Ability to appoint the best fund managers with wholesale purchasing power

• Continuous monitoring, plus quarterly reviews

• Any manager change is implemented for all clients at the same time at no additional cost and no tax implications

• No capital-intensive products, performance guarantees, options or overly complex, fashionable or high risk funds

• Whole of market for specialist products

Benefits of our approach

17

Whole of market* approach*Although our advice is restricted to the products and services available through St. James’s Place, we take responsibility for the due

diligence on all the providers whose products and services we make available to our clients, some of which are shown below.

SIP SERVICES

18

• 84% of clients scored their overall satisfaction with St. James’s Place as 8 or more out of 10

• 32% of clients scored us 10 out of 10

• 80% of clients rated 8 or more out of 10 for the way in which we communicate with them

• 79% of clients would invest with St. James’s Place again if making that decision today (scoring 8 or more out of 10)

* Survey of 60 clients carried out by Ledbury Research – December 2013.

What our clients think*

19

‘‘My Partner has done an excellent job, particularly when my husband passed away. I didn’t know what I was doing so he was very good...

he gave me advice and helped me stay in the right direction.’’‘‘ I’m just totally happy. I wouldn’t recommend them to other people if I weren’t. Recommendations can backfire, so you have to know it’s good.’’‘‘What they’ve got right is their rapport with their clients – it’s on the right level.

I work with another financial company and they seem a bit condescending, whereas St. James’s Place has the right balance.’’‘‘ I find it an excellent company and the Partner is first class. I’ve got no problems

with them. He’s got a very good attitude, he’s friendly, he comes round and visits when we ask. I honestly couldn’t ask for anyone better.’’

* Client survey carried out by Ledbury Research – December 2013.

What our clients say about us*

20

‘‘Our Partner has become a personal friend through the business. We couldn’t praise him highly enough.

He has saved us a lot of money; he has done exactly what you would expect. We can discuss any problems we have with him; he is always available to us.

He has never steered us wrong.

This also goes for St. James’s Place – they go hand-in-hand.’’ * Client survey carried out by Ledbury Research –November 2011.

What our clients say about us*

21

22

2014• Britain’s Most Admired Companies Award – Top in Sector

• Wealth Adviser – Best Private Client Investment Manager

• City of London Wealth Management Awards – Best Performing Fund

• The Personal Finance Awards – Best Financial Adviser

• Morningstar UK Fund Awards – Best Global Equity Fund

2013• Britain’s Most Admired Companies Award – Top in Sector

• Shares Awards – Best Wealth Manager

• Wealth Adviser – Best Private Client Asset Manager UK

• City of London Wealth Management Company of the Year

• FT and Investors Chronicle – Best Wealth Manager for Tax Efficient Investments

2013 continued

• The Personal Finance Awards – Best Financial Adviser

2012• FT and Investors Chronicle – Wealth Manager of the Year

• City of London Wealth Management Company of the Year

• UK Stock Market Awards Winner

• The Personal Finance Awards – Best Financial Adviser

2011• FT and Investors Chronicle – Best Wealth Manager for Tax

• The Personal Finance Awards – Best Financial Adviser

2010• Daily Telegraph Wealth Manager of the Year

Award-winning

Award winning in 2013/2014

Best Private Client Asset Manager UK

AWARDS 2014

23

24

How do we compare?

25

• We aim to provide a quality service which exceeds our clients’ expectations; a long-term relationship with a trusted financial adviser supported by a financially strong company.

• We have clear and transparent charges and make this information available to clients before concluding business, so that they can judge how to value our service.

How do we compare?

26

Whilst often well-intentioned, the move to improve transparency and provide numerous choices for clients makes comparison very difficult.

For example:

• Energy tariffs – gas, electricity, dual fuel, peak, off-peak etc.

• Mobile phone – phone, line rental, texts, data

• Broadband – fixed cost, usage costs, data costs

• Car finance – loan, hire purchase, personal contract hire, Personal Contract Purchase

Transparent is not comparable

27

Transparent... but not simpleThe table illustrates the fees a client may have to consider when trying to compare advice and products based on publicly available

information for a variety of firms and providers.

Advice

Initial advice fee% of initial investment

ORHourly rate (£) Rate may depend on seniority of adviser

Rate may depend on seniority of adviser

Amount may depend on activity

Tiered fee based on transaction size

Tiered fee based on amount invested + VAT

Tiered fee based on fund value

Amount based on fund value

Amount per transaction

Amount based on fund value

Amount will depend on insurance company

Amount based on value of funds under management

Amount based on value of funds under management

% of Funds Under ManagementOR

Hourly rate (£)

% of Funds Under ManagementOR

Prescribed fees (£)

% of Funds Under ManagementOR

Prescribed fees (£)

Tiered fee based on fund value

Amount will depend on platform providerAccount fee (£)Platform/Admin

Ongoing advice fee

Transaction charges

Insurance Company

Administration fee

Wrapper charges

Administration fee

Fund Management

Annual charge (%)

Annual management charges (£)

Additional miscellaneous costs

28

• Adviser A 3.5% p.a.• Wealth Manager D 3.4% p.a.• Adviser B 3.3% p.a.• DFM B 3.0% p.a.• Adviser C 2.9% p.a.• Adviser D 2.8% p.a.• Wealth Manager A 2.7% p.a.• DFM C 2.6% p.a.• DFM A 2.6% p.a.• Bank A 2.6% p.a.• Adviser E* 2.5% p.a.

• Wealth Manager B** 2.5% p.a.• Adviser F 2.5% p.a.• Wealth Manager C 2.5% p.a.• DFM D 2.5% p.a.• Provider 2.4% p.a.• St. James’s Place 2.4% p.a.• Bank B 2.4% p.a.• Bank C 2.4% p.a.• Bank D 1.9% p.a.• Adviser G 1.9% p.a.

Total charge comparisons

*Adviser E does not accept portfolios of less than £200,000, so the level of charges shown is not available in practice. **Wealth Manager B charges calculated based on a portfolio of £200,000, as minimum fees distort the position below this (3.4% for £100k). The figures shown have been produced by Grant Thornton, an external consultancy. They show the Reduction in Yield over 10 years for a £100,000 investment into unwrapped mutual funds (Unit Trust, OEIC or equivalent), assuming 5% p.a. fund growth.Grant Thornton has collated and computed data in the attached table from publicly available information, and some mystery shopping face-to-face meetings, as at October 2014 for use by St. James’s Place and its Partners. Grant Thornton accepts no duty of care or liability of any kind whatsoever to any other third parties, including without limitation clients or investors. Use of this report should not, and does not, absolve any third parties from using due diligence in verifying the report’s contents. The information must not be relied upon by any party in making investment decisions.

29

• Fully integrated face-to-face advice and service

• Full disclosure of costs associated with advice, both initial and ongoing, and our service before we do business

• Personalised illustration

• Our distinctive approach to investment management – select, monitor, change

• The suitability of advice guaranteed* by St. James’s Place Wealth Management

*St. James’s Place guarantees the suitability of the advice given by members of the St. James’s Place Partnership when recommending any of the wealth management products and services available from companies in the group.

The St. James’s Place approach

30

• How safe is your adviser’s firm? – Berkeley Berry Birch, Inter-Alliance, Millfield, Money Portal, Burns Anderson, Clarkson Hill, Park Row, Honister are examples of advice firms that have ‘failed’ in recent years.

• What resources do they have to complete due diligence on investments and products? – we often say ‘no’ to products that we deem unsuitable for our clients such as; Arch Cru, Key data, MF Global, Life Settlements, structured products

• What succession plans are in place for your adviser?

• What technical and expert resources are available to support you?

• Is the advice you receive guaranteed?

Who stands behind the advice?

31

We will:

• Fully understand our clients’ financial circumstances

• Identify our clients’ goals and objectives

• Liaise with other professionals and experts as needed

• Formulate advice and make recommendations

• Provide a full explanation of all our costs, charges and advice fees

• Provide advice backed by the St. James’s Place Advice Guarantee*

• Communicate with our clients and provide an ongoing service as agreed by them

Service Standards Charter

*St. James’s Place guarantees the suitability of the advice given by members of the St. James’s Place Partnership when recommending any of the wealth management products and services available from companies in the group.

32

Appendices

33

Our Executive BoardWe are an independently quoted company with a Board of Directors which in turn

has a majority of Independent Non-Executive Directors

Chairman Executive Directors

David BellamyChief Executive

Andrew CroftChief Financial Officer

Ian GascoigneManaging Director, Partnership

David LambManaging Director, Business Development

Baroness Wheatcroft

Simon Jeffreys Iain Cornish

Roger Yates

Sarah Bates

Independent Non-Executives

34

The strength of our governance is fundamental to our high standards and the longevity of our business:

• Compliance with regulatory and legal responsibilities

• Entrepreneurial leadership setting strategy, vision and values

• Ensuring strong management and succession plans

• Implementing controls to safeguard against risks

• Employing the necessary financial and human resources to deliver value to our clients

• Operating a financially strong business

• Avoiding capital intensive products, options, complex, fashionable or high risk structures

Governance

35Past performance is not indicative of future performance. The value of an investment with St. James’s Place can fall as well as rise. You may get back less than the amount invested.

Funds under management19% p.a. compound growth over the last 5 years and 19% p.a. over last 10 years (at Sept 2014)

£ b

illi

on

10

20

30

40

50

020052004 2006 2007 2008 2009 2010 2011 2012 2013 2014

30 Sept

+29%

+20%

+25%+18%

-10%

+31%

+26%+6%

+22%

+27%

+11%

49.1

OCTOBER 2014

ST. JAMES’S PLACE WEALTH MANAGEMENT

SJP4150-VR8 (10/14)

The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.Members of the St. James’s Place Partnership represent St. James’s Place Wealth Management plc, which is authorised and regulated by the Financial Conduct Authority.

St. James’s Place Wealth Management plc, St. James’s Place UK plc, St. James’s Place Unit Trust Group Ltd and St. James’s Place International plcare members of the St. James’s Place Wealth Management Group.

St. James’s Place UK plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.St. James’s Place Unit Trust Group Ltd is authorised and regulated by the Financial Conduct Authority.

St. James’s Place International plc is authorised and regulated by the Central Bank of Ireland.St. James’s Place Wealth Management plc Registered Office: St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom.

Registered in England Number 4113955.