www.cazenovepms.com

WE’RE THE VALUE YOU CAN ADD

Cazenove Portfolio Management Service

For professional advisers only.

Robert ThorpeHead of

UK Retail

Nick GeorgiadisHead of

Intermediaries Team

Overview

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In this session we will discuss:

• Why outsource?

• What to outsource?

• Outsourcing options

• Due diligence

• Our solutions

WHY OUTSOURCE?

Key considerations when managing a client’s wealth

Managing a client’s wealth

Asset allocation

Investmentselection

Transaction Monitoring

Suitability

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Asset allocation

• Volatility levels at historical highs

• Rise in cross asset class correlations

• Increased impact of global political fiscal policy on asset prices

Source: Bloomberg, 31/08/07 to 31/08/2012

2007 2008 2009 2010 2011 20120

10

20

30

40

50

60

70

80

90Vix Index

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Active vs Passive: no argument with quality research!

Source: Lipper, B Acc, net income reinvested at 31/08/12

Cazenove UK Opportunities Fund performance over five years

% g

row

th

08/0

711

/07

02/0

805

/08

08/0

811

/08

02/0

905

/09

08/0

911

/09

02/1

005

/10

08/1

011

/10

02/1

105

/11

08/1

111

/11

02/1

205

/12

08/1

2-60

-40

-20

0

20

40

60

Cazenove UK Opportunities Fund FTSE All-Share TR Index

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Right manager, right time – Woodford vs Buxton

Source: Lipper, 94 months from 28/06/02 to 30/04/10

06/0

212

/02

06/0

312

/03

06/0

412

/04

06/0

512

/05

06/0

612

/06

06/0

712

/07

06/0

812

/08

06/0

912

/09

-50

-40

-30

-20

-10

0

10

20

30

40

Invesco Perpetual Income Inc Relative to Schroder UK Alpha Plus A Inc

Performance of Invesco Perpetual Income Fund relative to Schroder UK Alpha Plus

% g

row

th

-44.3

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Transaction, speed and cost/value perception

Automated pros:

• Timing - useful for short-term tactical trades

• Re-balancing for client

Automated cons:

• Clients may not see advisers role in transactions

• Adviser removed from process (positive or negative?)

• Time and cost it takes to make changes…

(however…..£50m in DFM models, cost of DFM 25bps +

VAT =£150,000)

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Monitoring

• Monitoring and managing portfolio

• Reacting or not to any change in sentiment to trigger an

investment change or change in asset allocation

• On-going client suitability

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Suitability

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Source: FSA, www.fsa.gov.uk

Due diligence

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Source: FSA, www.fsa.gov.uk

Help with due diligence

Cazenove Capital guide to be produced shortly….in the meantime:

Available free

• Generic overview of available services:

Defaqto - a guide to discretionary fund management: www.defaqto.com

• DFM performance review available free:

Asset Risk Consultants – Suggestus Services: www.suggestus.co.uk

FSA – Assessing suitability – Guidance – July 2012

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Source: FSA, www.fsa.gov.uk

CAZENOVE CAPITAL AS YOUR INVESTMENT

PARTNER

Cazenove Portfolio Management Service

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*0.5% AMC on Class X shares, minimum £1m waived via adviser platform. **1% AMC (plus VAT) up to £1m, scaling down to 0.5% on any balance thereafter. More information on fees is available on request.

• One service with two

propositions

• Same journey, but

a different route

• Over £2bn invested in

service by advisers

• Low annual charge

.

Range across the risk spectrum

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Source: Distribution Technology. The fund risk profiles are accurate as at 30/06/2012

Our fund performance

• Top decile returns of 47.0% since restyle*

• Bottom decile volatility of 53 competitor funds since restyle*

• Ranked 2nd for Information Ratio – a measure of risk-adjusted returns*

Cazenove MM Diversity Fund relative to IMA Mixed Investment 20-60% Shares*

*Source: Lipper Hindsight, gross income reinvested 01/09/05 to 31/08/2012The fund restyled to a multi-asset approach on 01/09/05

09/05 09/06 09/07 09/08 09/09 09/10 09/11-5

0

5

10

15

20

25

30

Cazenove Multi-Manager Diversity Fund IMA Mixed Investment 20-60% Shares Sector

% g

row

th

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Our discretionary fund management

Source: Asset Risk Consultants PCI (ARC) www.assetrisk.com at 31/03/12.

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Why advisers select Cazenove Capital for DFM

Independence

Specialist intermediaries team

Tailored portfolio management service

Strong risk-adjusted performance

Genuine expertise in specialist areas of investment

Central investment process – consistency!

Established trust in the adviser community

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Working with advisers

• Initial proposal

• Regular communication – email,

phone or meetings

• Quarterly or six-monthly full

performance valuations

• Online valuations facility

• Dedicated portfolio manager and

support team

• Formal meetings with you and your

client

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Wealth management central investment process

Equities and fixed income specialists

Fund selection team

Economics and Investment Risk

Technical analysis

Robin Griffiths

Richard Jeffrey

Marcus Brookes

Robin McDonald

Nick Bucknell

Earnings/ valuation overview

Fund flows

External research

Investment committee

Chris Rice

Paul Marriage

Julie Dean

Peter Harvey

Steve Cordell

Portfolio manager

ClientAdviser

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Starting points

Asset allocations based on June 2012

Three optimal asset allocations

• Defensive

• Intermediate

• Progressive

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Building client portfolios

• Starting point for portfolios

• Tailored to clients requirements

• Rigorous investment process

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SUPPORTING YOU

Supporting you

• National sales team to help understand and model our support to suit your business

• Regional team of portfolio managers

• Fee facilitation for DFM business

• Working only with advisers

• Online tools and enhanced reporting services

• Depth of marketing expertise, to provide content and materials specific to your

requirements

• Award winning proposition that is proven over many years, in different market

environments

• Cost effective

Further details are available at www.cazenovepms.com

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APPENDIX

Perception of adviser

Client AdviserRelationship/

value

Trusted Expertise

Identify goals

Risk mitigation

Navigate market place

Tax planning

Wealth management

Monitoring

Consultancy

Retirement fund

Schools fees

Income

Keyman

Portfolio risk

Product suitability

Legislation changes

Capital gains

Reduction

IHT/trusts

Deliver return goals

Risk management

Periodic reviews

Changes to circumstances

Adjust plan

Individual events/opportunities

Comprehensive

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Demonstrating adviser value

Example for use of DFM:

• Establishing suitability

• Initial due diligence of market place and selection

• Providing access to selective DFMs

• Regular on-going review of the clients circumstances and goals

• On-going review of portfolio management and performance set against goals

• Continuing audit of DFM, business, personnel and service levels

• Audit of DFM client specific reporting

• Regular contact with client, providing communications of portfolio performance,

market and industry views and recommendations of changes necessary

Issued by Cazenove Capital Management (Cazenove Capital). It is for information purposes only and does not constitute an offer to enter into any contract/agreement nor a solicitation to buy or sell any investment or to provide any services referred to therein.

The information provided (including the Dynamic Planner® and risk profiles) is to assist financial advisers when establishing their clients’ attitude to risk. The responsibility for assessing the suitability of financial products remains solely with the financial adviser. The provision of this information should not be construed or interpreted that either Cazenove Capital or Distribution Technology are providing financial advice.

This document is solely for the use of professional intermediaries and is not for general public distribution.

The contents of this document are based upon sources of information believed to be reliable, however, save to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to its accuracy or completeness, and Cazenove Capital or connected companies, directors, officers and employees do not accept any liability or responsibility in respect of the information or any recommendations expressed herein which, moreover, are subject to change without notice.

This document has been produced based on Cazenove Capital Management’s research and analysis and represents our house view. Unless otherwise stated all views are those of Cazenove Capital Management. It may not be reproduced in any form without the express permission of Cazenove Capital Management and to the extent that it is passed on, care must be taken to ensure this is in the form which accurately reflects the information given here. Unless otherwise indicated, the source for all data is Cazenove Capital.

Past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and an investor may not get back the amount originally invested and may be affected by fluctuations in markets and exchange rates.

Cazenove Capital Management is the name under which Cazenove Capital Management Limited (registered No. 3017060) and Cazenove Investment Fund Management Limited (registered No. 2134680) each authorised and regulated by the Financial Services Authority and of 12 Moorgate London EC2R 6DA provide investment products and services.

Regulatory information and risk warnings

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