Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties Standard Life Wealth The Investment Specialists Darren Ripton – Head of Investment Process

22 So what could go wrong over the next 2 years ? Here are some of the “known unknowns!” Euro zone break up The Euro zone stays together! Disruption around the US Elections followed by deficit reduction plan Deleveraging process across the Developed World A Chinese hard landing / Issues around the Politburo Reshuffle Inflation vs Deflation Political Interference to increase Conflict in Iran / Oil Price Shock 59 Countries will have completed elections in 2012 Elections in 2013 include Germany, Italy and Japan The “unknown unknowns” are just depressing!

33 Long periods of volatility and no growth Empirical observation: over the long term, equities (shares) have provided investors with high, real (inflation adjusted) returns. (The U.S. Equity market is shown simply because this is the longest data set of equity market returns available.) US equity market total returns, inflation adjusted Log scale, January 1871 to Aug 2010 Data source: Professor Robert Schiller, Yale University 17 years 20 years 17 years 10 years … 100 1,000 10, ,000 1,000, Warning: Past performance is not a guide to future performance

44 Source: HSBC, Bloomberg, 31 May 2012 Correlation between asset classes has increased

5 Increasing Certainty The benefit of our dynamic asset allocation approach 5 Clients need access to their wealth at specific points on the yellow line. Our approach is to stay as close as possible at all times Your goals are our benchmarks, not the market “

6 Risk profile of multi-market return strategy The portfolio is exposed to multiple diversified market risks 22.0% is total stand-alone investment risk chasing returns Equivalent equity volatility is 18.8% Independent risk analysis shows the benefits of investment diversification Source: Standard Life Investments UK GARS portfolio, 31 March

7 Consistency should build into long-term Performance It’s all about the compounding of those positive returns Our portfolios are designed to produce more consistent returns They are not built to produce very high one-month returns, as equities can but they are built to try to avoid the big losses that equities can also suffer SLW Portfolios’ Aims Low volatility of returns Target returns over 3 years Track Record so far low volatility of returns on target to exceed return objectives over 3 years Cumulative returns # SLW Portfolios 29.0% (after fees) FTSE ® All-Share (TR) 16.0% (no fees) Volatility * SLW Portfolios 5.6% FTSE ® All-Share (TR) 18.5% Source: Standard Life Wealth # 31/7/08 to 31/05/12 * Standard deviation of monthly returns, annualised Past performance is not a guide to future performance 7

8 Strategy in practice Comparison of Dynamic Asset Allocation Strategy with the FTSE All Share and APCIMS Balanced 8 The data in the illustration shows the representative performance of a SLW medium risk portfolio targeting a Libor +3% return after fees and charges. The index is the APCIMS Balanced Total Return Index and the data shown is for the same periods as the SLW data. The APCIMS and FTSE® All Share index returns do not include fees. Past performance is not a guide to future performance. Source: SLW, Bloomberg, BBH, TDW (31/07/2008 to 31/05/2012) For investment professionals only

year to date performance summary The data in the illustration shows the representative performance of a SLW medium risk portfolio targeting a Libor +3% return after fees and charges. The index is the APCIMS Balanced Total Return Index and the data shown is for the same periods as the SLW data. The APCIMS and FTSE ® All Share index returns do not include fees. Past performance is not a guide to future performance. Source: SLW, Bloomberg, BBH, TDW (31/12/2011 to 31/05/2012) For investment professionals only

10 Client Risks For investment professionals only Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up and cannot be guaranteed. The SIA Fund The SIA Fund is designed to be used as part of a strategic approach to individual client wealth objectives and should not be considered as a stand-alone investment. The SIA Fund is only suitable for those investors who require a separate asset allocation fund to be used in conjunction with their existing investments, primarily global equities, to achieve an overall objective of a total return. The fund is designed to generate an absolute return when viewed with other assets in the client’s portfolio. As a result, if other assets in the portfolio are performing well, this fund may not produce a positive return. The use of derivatives in the fund may result in increased volatility in the fund’s price. Due to the leveraged nature of derivatives, gains and losses can be greater than associated with traditional investment instruments. The fund will have the ability to hold short derivative positions. This means that the fund will not necessarily follow market trends i.e. if stock markets rise the fund may not do so at the same rate, or at all. *"FTSE" is a trademark of the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited ("FTSE") under licence. Standard Life Wealth is licensed by FTSE to redistribute the FTSE All Share and FTSE 100. All rights in and to the FTSE All Share and FTSE 100 vest in FTSE and/or its licensors. All information is provided for reference only. Neither FTSE nor its licensors shall be responsible for any error or omission in the FTSE All Share and FTSE 100.

11 Standard Life Wealth Limited (SC317950), Discretionary Investment Manager, registered in Scotland at 1 George Street, Edinburgh EH2 2LL, and Standard Life Savings Limited (SC180203), ISA Plan Manager, registered in Scotland at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH, are both authorised and regulated by the Financial Services Authority. Call for Standard Life Wealth and for Standard Life Savings. Calls may be recorded/monitored and call charges may vary. © 2011 Standard Life