Fine Dining Experience

About us

• Darren Mercer – Managing Director

• Private Clients, Business Owners, Trustees & Charities

• Holistic approach to Wealth Management Planning

• Consistent and meticulous approach to high-quality in all aspects of business

• Experienced support team

Our Office

Client Services

Monday Market Bulletins

Investment Bulletins

Special Investment Bulletins

Client Services

Audio conferences and transcriptsInvestor Magazine

SJP TV Manager CDs

The Foundation

Total raised to date is over £24 million in 20 years

Mercer & Associates Charity Contributions

• St. Kentigern’s Hospice £ 1,000• Bodelwyddan Cancer Unit £ 1,000• Claire House Children’s Hospice £ 500• AT Society £ 1,000• The Movement Centre £16,475• The St. James’s Place Foundation £10,000• Motor Neurone Disease Association £ 500

Total Contributions £30,475

Today’s Sponsors

• £500 holiday voucher x 2• 6 bottles of wine x 2

Each case includes:– Castillo Perelada Cava Brut Reserva– Cotes du Rhone Roulepierre, Pierre Amadieu 2010– Macon Villages Domaine De Marechaudes 2010

Investing for Tomorrow

David Lamb

Managing Director

St. James’s Place Wealth Management

• What are the most important features of your investment approach?

• Is now a good time to invest?

• Independent Fund Managers?• Good (future) Performance?• Security for your money?• No conflict of interest?• Monitoring?• Transparency?• Governance – Who is your Investment Committee?• When should you invest?• When do you say No?

Our InvestmentPhilosophy

• Contract-out Investment Management

• ‘Manage’ the Fund Managers– Select– Monitor– Change

• Offer spread and choice of Fund Managers– Different Investment Styles

The St. James’s Place Approach

Appoint theFund Managers

Sets PerformanceObjectives

Aim for Top 25%

Risk Management& Strategy

Decisions:Change Firm?

Change Manager?No Change?

Input / advice fromStamford Associates

'Manages the Managers'

Investment Committee

Investment Choice

Is past performance the most important issue when selecting a fund manager?

Who is managing your fund?

What do you do if your fund manager leaves?

“…

in 2006 the job turnover among fund managers was 51%, meaning that one fund manager in two has changed jobs in the

last 12 months …”Source – Anthony Hilton, Evening Standard 19 Jan 2007

“Less than 1 in 5 managers in the UK have been working with their current fund for more than two years…”Source – New Star, Fund Adivser.com 23 March 2007

“Average fund manager jumps ship after 2½ years.”Source – Citywire 1 October 2007

Source: The Times 9 Dec 2011

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Some Questions for 2012

The ‘big picture’ issues:• “Will the Eurozone

survive intact?”

• “Will the sovereign debt crisis hit Britain?”

• “Will the 30-year bull market in government bonds come toan end?”

• “Will the global economy continue to grow?”

The issues for Investors:• “Will UK interest rates rise?”

• “Will UK inflation fall?”

• “Will US and UK companies pay out higher dividends?”

• “Where is the ‘best’ place to invest?”

Sir Mervyn King, Governor BoE, December 2011

“Who knows what is going to “Who knows what is going to happen tomorrow, let alone happen tomorrow, let alone

next month?”next month?”

Source: Sunday Times 26 Feb 2012

Why own equities?

• Historically, in ‘real’ terms the major UK asset classes have grown by:– Shares 5.0% pa– Gilts 1.2% pa– Cash 1.0% pa

Source: Barclays Gilt Capital Report 2010. Data from 1899 to 2009. Past performance is not a guide to the future

Source: Financial Express. Stock market represented by the FTSE Allshare Index. Figures to 31/07/12. please be aware that past performance is not indicative of future performance. The value of an investment and the income from it can fall as well as rise.

Take the long termview

Distribution of returns from UK equities since 1900Negative years

2006

Positive years

20041998199619881987

2007 19851976 19811962 19791961 19781956 1972

2000 1952 19651994 1951 1955 20051970 1947 1950 20031966 1945 1946 19991964 1927 1944 19971960 1926 1943 19951957 1923 1942 19931948 1913 1941 19921940 1912 1936 1991

2001 1939 1911 1935 19861990 1938 1910 1934 1984 19891969 1921 1909 1928 1982 19831949 1915 1908 1925 1963 19801937 1914 1906 1924 1953 1971 1977

2002 1930 1907 1905 1917 1933 1967 19681973 1929 1903 1902 1916 1919 1932 1959

1974 2008 1931 1920 1901 1900 1904 1918 1922 1958 1954 1975--50 to --40 -40 to --30 --30 to --20 --20 to -10 -10 to 0 0 to 10 10 to 20 20 to 30 30 to 40 40 to 50 50 to 60 60+

Percentage (%)

The worst year

The second worst

The best year

2009

2010

2011

Number of negative years 27%

Number of positive years 73%

Cumulative returns 4.5% p.a.

Source: FIL, Barclays Capital, Lipper. Past performance is not a guide to future performance.

Negative years Positive years

Source: Barclays Equity Gilt Study Guide. Data to end of 2011

UK Market -10 year rolling average annualised nominal return

0%

5%

10%

15%

20%

25%

30%

35%

10 y

ear %

AG

R

“There are 700 million users of Facebook, if it was a country it would be the third largest in the world.”

Ian Butterworth, Aviva13 June 2012

Source: The Times 8 Mar 2011

World first as 3D printer creates JAW for woman, 83

Source: http://uk.news.yahoo.com 7 Feb 2012

10m alive in Britain today will live to be over 100

10 Fastest-Growing Economies

Annual Average GDP Growth (%)

ANGOLA 11.1 KAZAKHSTAN 8.2

CHINA 10.5 CHAD 7.9

MYANMAR 10.3 MOZAMBIQUE 7.9

NIGERIA 8.9 CAMBODIA 7.7

ETHIOPIA 8.4 RWANDA 7.6

2001 - 2010

Annual Average GDP Growth (%)

CHINA 9.5 VIETNAM 7.2

INDIA 8.2 CONGO 7.0

ETHIOPIA 8.1 GHANA 7.0

MOZAMBIQUE 7.7 ZAMBIA 6.9

TANZANIA 7.2 NIGERIA 6.8

2011 - 2015

Sources: The Economist, IMF

What is your approach to investment management?

How will you choose a manager to look after your investments?

Fine Dining Experience

Award Winning Wealth Management

Invesco Perpetual UK EquitiesGood news, bad news

This presentation is for Professional Clients only and is not for consumer use.

Presented by

Mitchell Fraser-JonesProduct Director

James McAuliffe

Client Director

Date

21st September 2012

Working With SJP, the Investment Committee and Stamford Associates

• Our Products

• The research Process

• The Investment Committee

• Ongoing research / Due diligence meetings

38

Economic outlook(The bad news)

40

The economic outlook remains challenging

• Economy has stabilised

• But recovery faces substantial risks— Private sector remains burdened by too much debt— Financial system is still fragile – deleveraging is a multi-year process— Fiscal deficits need fixing – sovereign risks loom large — Can the economy cope without monetary & fiscal support?

• This was not a “normal” recession & this is not a “normal” recovery

50447/L

i/M

F-J/

nst

itutional

-July

12

UK interest rates at an all time lowWhat would happen if rates normalised?

41

Source: Capital Economics as at 30 June 2012 .

0

2

4

6

8

10

12

14

16

18

1865 1875 1885 1895 1905 1915 1925 1935 1945 1955 1965 1975 1985 1995 2005

UK Base Rate (%)

50447/L

i/M

F-J/

nst

itutional

-July

12

There is too much debt across the developed world, but particularly in the UK

Source: Citi Investment Research & Analysis as at 3 July 2012.

42

Private Sector Debt/GDP Ratios (%)

60

80

100

120

140

160

180

200

220

240

1980 1985 1990 1995 2000 2005 2010

Euro Area UK US Japan

Equity market outlook(The good news)

Not all stocks are cheap but, collectively, the UK stock market looks reasonably valued

0

5

10

15

20

25

30

35

65 70 75 80 85 90 95 00 05 10

UK Market PE Cyclically Adjusted PE

44

Source: Datastream to 29 February 2012.

50447/L

i/M

F-J/

nst

itutional

-July

12

Compared to bonds, equities look very attractive – equities have rarely yielded more than Gilts in post-war history

45

Source: Morgan Stanley Research – data to 30 June 2012.

0

2

4

6

8

10

12

14

16

18

20

30 33 36 39 42 45 48 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 99 02 05 08 11

FTSE All-Share Dividend Yield (%) 10 year Gilt Yield (%)

46

Investment strategy summary

• Defensive growth opportunities— Resilient business models— Low earnings volatility— Growing dividend streams

• Large caps attractively valued— Quality, blue-chip companies – “the new sovereigns”— International exposure— Strong balance sheets

• Sticking to fundamentals— Active management— Focusing on absolute risks & returns— Taking a long-term view

47

Important information

This presentation is for the attendees of Professional Clients only and is not for consumer use.

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Past performance is not a guide to future returns. Where Mitch Fraser-Jones has expressed opinions, they are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco Perpetual investment professionals.

Where securities are mentioned in this document they do not necessarily represent a specific portfolio holding and do not constitute a recommendation to purchase or sell.

Further information on our products is available using the contact details shown.

Invesco Perpetual is a business name of Invesco Asset Management Limited30 Finsbury Square, London EC2A 1AG, UKWebsite: www.invescoperpetual.co.ukAuthorised and regulated by the Financial Services Authority