PRINCIPAL AN OVERVIEW BY HUGH TITCOMB CHIEF EXECUTIVE OFFICER

Principal - A Summary ●A leading discretionary portfolio management specialist ●Founded in 1987 ●90 employees: 30 Investment Managers ●Providing investment management services to: i.Private individuals ii.Trusts iii.Pension funds iv.Charities v.Institutions ●Acquired by the Sanlam Group in 2008 ●Authorised and regulated by the Financial Services Authority

Principal - Service Proposition Private Client DivisionRetail Investment Management Division Institutional Division Distribution via IFAs and direct Sales team / asset gatherers Cross selling Wealth management opportunity IFA partnerships / joint ventures Model portfolios Use of in-house and third party platforms Distribution via SUK sales team Sanlam Group mandates External mandates Shared services Common asset allocation / stock / fund selection processes Common compliance, finance and operational support

Assets Under Management: 2009 – 2010 (£m)

Wealth Management - Strategic Rationale ●Increasing requirement for individual ownership of financial affairs. ●Tarnished reputation of some existing service providers. ●Poor investment/advice experience suffered by some in recent past. ●RDR will result in reduced number of financial advisors – but increase the opportunity for those remaining. ●Estimated market size (UK)  Affluent (£100k+) 1.8m+  HNW (£500m+) 500,000+  UHNW (£5m+) 150,000+

Wealth Management Proposition Investment Management - Pensions - Other wrapped monies - Taxable portfolios - Execution only - Private equity/property investment Holistic, integrated financial solutions  Tax planning  Estate planning  Trust advice/structures  Philanthropy Banking - Debt management advice - C/F advice - Credit facilities - Deposits/FX Protection products - Life cover - Critical illness - Health Client

UK Wealth Management – competitor landscape

Wealth Management Proposition – Sanlam UK In-House ● Investment Management - Pension monies incl drawdown portfolios; - Other wrapped monies; - Taxable portfolios incorporating CGT mgt. - Execution only. ● Tax planning. ● Estate planning. ● Trust advice. ● Debt management advice. Out-Sourced ● Banking/credit facilities. ● Protection products. ● Access to bespoke/club investment opportunities eg private equity/property investment. ● C/F advice. ● Trust structures. ● Offshore UK booking centres. Service Model ● Fee based. ● Relationship, client centric approach based on trust and quality service. Target market HNW with investable assets of £500k+ or income of £150k+ pa. Affluent with investable assets of £100k+ Sanlam’s offshore private clients. Client

Critical Success Factors ●People  Strong relationship management capabilities;  Strong business development/distribution capabilities;  Experienced and credible;  Appropriate incentive/retention mechanisms. ●Service offering  Quality and trusted products and service - offering value for money;  Robust and reliable investment performance;  Transparent pricing. ●Operational  Service excellence;  Systems capability including consolidated reporting. ●Communication/positioning  Avoiding concerns amongst existing IFA introducers re “encroaching on their patch”.